one danger of starting a proprietorship is that you may be exposed to personal liability if the business…

one danger of starting a proprietorship is that you may be exposed to personal liability if the business goes bankrupt. this problem would be avoided if you formed a corporation to operate the business. true false

one danger of starting a proprietorship is that you may be exposed to personal liability if the business goes bankrupt. this problem would be avoided if you formed a corporation to operate the business. true false

Answer

Brief Explanations:

In a proprietorship, the owner's personal assets can be used to satisfy business debts in case of bankruptcy due to unlimited liability. In a corporation, the owners (share - holders) have limited liability, meaning their personal assets are generally protected.

Answer:

True