Business, 06.07.2019 20:50 fitzsimmonssheovgrbh

If a sole proprietor is found negligent of an action, then that person could face:

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If a sole proprietor is found negligent of an action, then that person could face liability charges. If a sole proprietor is found negligent, they are able to be procescuted for the actions that they did. A sole proprietor is a person doing business as themselves, and not using a EIN/business license/LLC to conduct their business. The sole proprietor is held responsible for anything that they are found guilty for.

Answer from: babygirl200702

If a sole proprietor is found negligent of an action, then that person could face unlimited liability.

Further Explanation:

Liability of a sole proprietor:

Sole proprietorship is a type of business where all the activities are carried out by the single person, who is the owner of the firm. All the business decisions are taken by the owner of the firm. The liability of a sole proprietor is unlimited. They are personally liable for the business loses. It means that they have to pay from their personal assets for recovering the business loss.

Negligence action:

Negligence action is a situation where the Sole proprietor is commuting some wrong actions but he/she did not intend to do so. Sole proprietor is liable for all the losses and liability in case of negligence action. Sole proprietor has to pay from his/her personal assets for the recovery of the losses occurred due to the negligence actions.

Thus, the sole proprietor has to face unlimited liability in case of negligence action.

Learn more:

1.Learn more about the advantages of sole prioprtiorship

2.Learn more about the partnership

3.Learn more about the types of association

Answer details:

Grade: High School

Subject: Accounting

Chapter: Sole Proprietorship

Keywords: If, a, sole, proprietor, is, found, negligent, of, an, action, then, that, person, could, face, business, type of business, loss, unlimited liability, limited liability.

Answer from: Quest

explanation:

Answer from: Quest

answer: e

explanation:

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