Question

question 33 exercises - entrepreneurship: going from an idea to a business if a sole proprietor is found negligent of an action, then that person could face a) limited liability. b) stock options. c) danger of dispute settlement. d) a gain in business assets. e) unlimited liability.

Explanation:

A sole proprietor has unlimited liability, meaning they are personally responsible for business debts and legal issues (like negligence). Limited liability (A) is for entities like corporations. Stock options (B) are for equity compensation, not related to negligence. Dispute settlement danger (C) is too vague, and a gain in assets (D) is incorrect as negligence leads to liability, not gain. So the correct answer is E.

Answer:

E) unlimited liability.