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Harry owns Popular Foods and Lively Potations (PFLP), holding ownership as a sole proprietor. Harry purchases inventory from George Habash for $50,000 on credit, and
Harry owns Popular Foods and Lively Potations (PFLP), holding ownership as a sole proprietor. Harry purchases inventory from George Habash for $50,000 on credit, and he borrows $50,000 from Gotham Bank. The business fails, and Harry owes George $30,000 and he owes the bank $40,000. Harry owns his house ($300,000) but only has $10,000 in his business operating account. What canGeorgecollect from Harry?
Select one:
a.$0(limited liability)
b.$5,000( of operating account)
c.$10,000(entire operating account)
d.$30,000(entire outstanding debt)
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