Q1005
An unlimited liability for business debts and less capital for growth are limitations of
A.
proprietorship
AnswerB.
personal business
C.
Private Corporation
D.
personal ownership
Answer: Option A
Solution
Answer: Option A
Solution:
An unlimited liability for business debts and less capital for growth are limitations of proprietorship. Since the owner takes all the profits, he must also accept full personal responsibility for all the losses, even to the extent of his personal possessions.