elton started his own tree trimming business. when a tree limb accidentally fell on a customers house, they…

elton started his own tree trimming business. when a tree limb accidentally fell on a customers house, they sued elton for a million dollars and won. elton lost everything in the lawsuit—his home, his car, and his life savings. what type of business structure did elton most likely use?\n\na. limited liability partnership (llp)\nb. limited liability company (llc)\nc. corporation\nd. sole proprietorship

elton started his own tree trimming business. when a tree limb accidentally fell on a customers house, they sued elton for a million dollars and won. elton lost everything in the lawsuit—his home, his car, and his life savings. what type of business structure did elton most likely use?\n\na. limited liability partnership (llp)\nb. limited liability company (llc)\nc. corporation\nd. sole proprietorship

Answer

Brief Explanations:

In a sole proprietorship, the owner has unlimited liability. This means personal assets like home, car, and life - savings can be used to satisfy business debts or legal claims. In limited - liability structures (LLP, LLC, corporation), personal assets are generally protected from business liabilities. Since Elton lost his personal assets in the lawsuit, he most likely had a sole proprietorship.

Answer:

D. sole proprietorship