Answer:
Unlimited liability
Step-by-step explanation:
Unlimited liability means that
owners of businesses are liable to pay all the debts incurred by the business.
A sole proprietorship refers to owner of a business which has no distinct legal entity from its owner. It is not a legal entity because the owner can not be separated from the business and all the debts incurred by the business will be borne or paid by the owner.
An example of a sole proprietor is a barber who has his business registered with the corporate affairs commission. It therefore means that all the debts incurred by the business will be borned by the owner.