What type of exposure to liability is there in a sole proprietorship?
A) Exposure is limited to the amount invested on fixed assets.
B) Exposure refers to the amount invested on variable assets.
C) Exposure is more if the size of transactions is limited.
D) Exposure is limited to the total fixed investments made by the owner.
E) Exposure is unlimited and the owner's personal responsibility.
Answer: E
Explanation: The owner has unlimited personal liability for the business's financial obligations in a sole proprietorship.
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