Question

3 basic forms of business ownership renee lumsden basic forms of business ownership the must 2 know owned and run by one person entitled to all profits and losses open - ended question if a sole proprietor goes out of business would he/she still be responsible for any debt incurred by the business? discuss... type your answer here rewatch submit

Explanation:

In a sole proprietorship, the owner and the business are not separate legal entities. This means the sole proprietor has unlimited liability. So, if the business goes out of business (fails), the sole proprietor is still personally responsible for any debts the business incurred. The owner's personal assets can be used to settle the business debts because there's no legal distinction between the owner's personal finances and the business's finances in a sole proprietorship.

Answer:

Yes, a sole proprietor would still be responsible for any debt incurred by the business if they go out of business. This is due to unlimited liability in sole proprietorship, where the owner and business are not legally separate, so personal assets can be used to pay business debts.