Final answer:
In a sole proprietorship, it is true that the owner's personal assets are at risk if the business fails, due to unlimited liability.
Step-by-step explanation:
In a sole proprietorship, the statement that the owner's personal assets are at risk if the business is not successful is true. This business structure is characterized by unlimited liability, which means that the owner is personally responsible for all debts and obligations of the company.
Should the business fail, the owner's personal assets such as home, car, and personal bank accounts could be used to settle the business's debts. Unless the business is incorporated, which might offer personal asset protection, the sole proprietor is entirely liable.