Under certain types of business entities, business owners are liable to pay business debts. What kind of personal assets might a business owner under one of those structures have to sell in order to cover those debts?

decisions or communications

education or experience

laptop or TV

house or car

1 answer

Under certain types of business entities, such as sole proprietorships or general partnerships, business owners can be personally liable for business debts. This means that if the business cannot pay its debts, creditors can seek repayment from the owner's personal assets.

In such cases, business owners might have to sell personal assets like:

  • House or car: These are significant personal assets that can be liquidated to raise funds to cover business debts.

So, the answer is house or car.