QUESTION 18 Unlimited liability is when a sole proprietor is not personally liab

Question

QUESTION 18 Unlimited liability is when a sole proprietor is not personally liable for all debts incurred by the business. True False QUESTION 19 The most common form of business organization is the corporation. False QUESTION 20 Entrepreneurs have more than one goal for starting a business and becoming self-employed. Which of the following reasons isNOT mentioned in the text? to seek independence and be their own boss to earn a profit and have a comfortable iving the opportunity to grow and expand a current business to meet community or social obligations QUESTION 21 The owners of a corporation are the board of directors officers top managers

Explanation / Answer

18. False.

Reason: Unlimited liability means partner shall bear the whole risk of business personally and discharge all the debts of business personally.

And the main disadvantage of operating partnership or sole properitorship business is unlimited liability .

19.FALSE

Reason : sole properitorship business is most common type of business operation as it includes professionals , single owner buiness while no legal formalities are required and it is also easy to operate and economical .

20 . Sorry No idea about which text are you talking about.

21. Stockholders

Reason: Every person who holds stock of the company is called stockholders and are known as owners of company. they are entitled for dividend.

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