Question

The business form (s) in which the owner (s) is (are) personally liable is (are) the _______________.

• A. Partnership only
• B. Proprietorship
• C. Corporation only
• D. Partnership and proprietorship

Answer 1

The correct option is D Partnership and proprietorship

Personal liabiltiy means that a person is fuly responsible for every activity carried out in the business.

Partnership inolves certain number of person who themselves manage all the working and are responsible for every decision. Hence, they are perosnally liable to the firm.

Proprietorship is a small scale business which is usually run by a single person and the person or owner take are of everything that may affect his business. Thus, he is also personally liable to its firm.