Martha started a flower shop as a sole proprietor. After one year, she was forced to close the
shop because business was so bad. At that time, the business assets totaled $50,000, but the
business liabilities totaled $125,000.
Which of the following statements is true?
A) Martha's business creditors can collect only the $50,000 now, but if Martha ever goes into
business again, they can get the assets of the new business.
B) Martha's business creditors can collect only the $50,000 of business assets.
C) Once Martha terminates the sole proprietorship, the business creditors cannot get even
the $50,000.
D) Martha is personally liable for the additional $75,000.
D
You might also like to view...
After a title page, the next part of a typical business plan is the ________
A) product overview B) market overview C) competitive overview D) management overview E) executive summary
Color and lighting have very limited influence on consumer behavior and are therefore of little concern in developing a store's image
Indicate whether the statement is true or false