A sole proprietorship is a business form where the sole proprietor is personally liable for the busi

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A sole proprietorship is a business form where the sole proprietor is personally liable for thebusiness and its risks. The sole proprietor is liable for business activities because, in this form ofbusiness, the sole proprietor is liable for every business activity in this form of business.Business is not a separate legal entity and is rather associated with the sole proprietor.Let us look at five of the financial liabilities faced by the sole proprietor.1.Debt liability.If the sole proprietor has taken any debt for the business, the sole proprietor is liable topay the debt as per the contract's agreed terms.2.Accounts Payable:The sole proprietor has to clear the accounts payable to the suppliers, vendors. Theaccounts payable act as the financial liability for the sole proprietor. The accounts should
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Spring
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joe
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