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Tamil Nadu Board of Secondary EducationHSC Commerce Class 11

What is unlimited liability? - Commerce

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Question

What is unlimited liability?

Short Answer

Solution

The liability of the proprietor for the debts of the business is unlimited. The creditors have the right to recover their dues even from the personal property of the proprietor in case the business assets are not sufficient to pay their debts.

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Characteristics of a Sole Trader
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Chapter 4: Sole Proprietorship - Exercises [Page 28]

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Samacheer Kalvi Commerce [English] Class 11 TN Board
Chapter 4 Sole Proprietorship
Exercises | Q III. 2. | Page 28
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