Franco is a sole proprietor who does business as Franco’s Computer Consulting. After starting up the business out of his basement, he lands a big client and begins to lease office space at a local office complex. He loses the big client in one month and can no longer generate enough business revenue to sustain the lease payments. He ends up owing his landlord

$5,000. Assuming no business assets exist, which is true?

a. Franco is personally liable for the lease payments.

b. Franco is not personally liable for the lease payments.

c. Franco is not personally liable for the debt if he vacates the property.

d. Franco is only liable for 50 percent of the lease payments.

e. Franco is liable only if he signed a personal guarantee.