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Ostrovityanka [42]
3 years ago
13

This is actually economics

Social Studies
1 answer:
White raven [17]3 years ago
8 0

Answer: Shared debt liability

Explanation:

Shared debt liability in this context means that in the case of a default, the owners of the business are personally liable for the debts of the business and so creditors can come for their personal assets to get settlement for the debt.

Both Sole Proprietorships and Partnerships have a shared debt liability with their businesses because if the business defaults on debt and the assets of the business are not sufficient enough to cover the debt, the creditors can come after the personal assets of the sole proprietor or the Partners.

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