Which of the following explains the significance of unlimited liability with regard to sole proprietorships? The...

 

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Which of the following explains the significance of unlimited liability with regard to sole proprietorships? The business can borrow money for any type of purchase. Stockholders can borrow money from the business. O There is no limit on the amount an owner can borrow. Creditors will absorb any loss from nonpayment of debt. There is no legal difference between the debts of the business and the debts of the proprietor. Which of the following explains the significance of unlimited liability with regard to sole proprietorships? The business can borrow money for any type of purchase. Stockholders can borrow money from the business. O There is no limit on the amount an owner can borrow. Creditors will absorb any loss from nonpayment of debt. There is no legal difference between the debts of the business and the debts of the proprietor.

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