Doing business as a sole proprietorship under the name Capital Venture, Dhani offered consulting services to assist new start-ups with business structures, decision making, and customer development. Norberto paid Dhani to provide these services for Norberto’s TexMex Café. When the café’s customer base did not grow quickly enough, Norberto was forced to close. He filed a suit against Capital Venture and Dhani to recover lost profits.

If the court rules in Norberto’s favor, could Dhani be personally liable for the amount of the judgment? Yes.

The simplest form of business is a ______________ proprietorship.

In this form, the owner is the business. A major advantage of the ______________ proprietorship is that the proprietor receives all the profits. A major disadvantage of the ______________ proprietorship is that, as ______________ owner, the proprietor alone bears the burden of all ______________ incurred by the business. In this problem, Dhani is Capital Venture. If the court rules in Norberto’s favor, Dhani is personally liable.