Final answer:
A sole proprietorship does not provide limited liability and the owner is completely responsible for all debts and liabilities. Only business structures like corporations offer limited liability, thereby protecting an owner's personal assets. The correct option is b.
Step-by-step explanation:
It is false that a sole proprietorship is the safest legal entity for a new business owner as it is associated with unlimited liability for negligence claims. A sole proprietorship means the business and the owner are legally the same entity, resulting in the owner being entirely responsible for all debts, obligations, and liabilities of the business. This can lead to personal asset loss in case of business debts or lawsuits.
In contrast, structures like a corporation or a Limited Liability Company (LLC) provide limited liability, protecting the personal assets of the owner from business liabilities.
Hence, Option b is correct.