Mr Brown Opens His Restaurant as a Sole Proprietorship

Mr. Brown opens his restaurant as a sole proprietorship. After a year of disastrous reviews, he has gone deeply into debt. His liability is

A) zero; he has already lost all his money.
B) the amount of his original investment.
C) limited only by his entire wealth.
D) limited to assets owned by the restaurant.
E) depends upon how much money he has in his savings account.

Correct Answer:

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