Question
Suppose you invest $20,000 of your own money in a business as a sole proprietor, and then borrow an additional $10,000. Suppose the business fails.
Suppose you invest $20,000 of your own money in a business as a sole proprietor, and then borrow an additional $10,000. Suppose the business fails. Which of the following describes your situation, and what is your total loss?
| Unlimited liability, $30,000 | ||
| Unlimited liability, $10,000 | ||
| Limited liability, $20,000 | ||
| Unlimited Liability, $20,000 | ||
| Limited liability, $30,000 |
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International Financial Management
Authors: Geert Bekaert, Robert J. Hodrick
2nd edition
013299755X, 132162768, 9780132997553, 978-0132162760
