Final answer:
The statement is false; in a sole proprietorship, the owner faces unlimited liability, meaning their personal assets can be seized to pay off business debts.
Step-by-step explanation:
The statement that as a sole trader your personal assets cannot be seized to pay off your business debts is False. In a sole proprietorship, the owner has unlimited liability, meaning personal assets can indeed be seized to satisfy business debts. This is because the business is not a separate legal entity from the owner. The liability suggests that the owner is 100% responsible for the debts and obligations of the company. If the business is unable to pay its debts, creditors can go after the sole trader's personal assets, which may include their home, car, savings, and other valuables.