Question

Unlimited liability means:

A. when you own your own business you are responsible for all the business debts.
B. you are only liable for the money you invest in the business.
C. as a franchisee your franchisor is responsible for the debts of the franchise.
D. you are liable for whatever advertising promises your firm makes.

Answer 1

Unlimited liability means that as a sole proprietor, you are responsible for all the business debts and personally assume the liabilities and financial obligations of the company.

Step-by-step explanation:

Unlimited liability means that when you own your own business, you are responsible for all the business debts. As a sole proprietor, you personally assume all the liabilities and financial obligations of the company.

This means that your personal assets, such as your home or personal bank accounts, can be at risk if the business fails or faces legal issues.