The liability of a sole proprietor is :

Correct option is B

The correct answer is (b) Unlimited

Explanation:
• In a sole proprietorship, the business and the owner are considered the same legal entity.
• The proprietor bears unlimited liability, meaning personal assets can be used to repay business debts.
• There is no legal distinction between the owner’s personal and business finances.

Information Booster:
• Sole proprietorship is the simplest form of business ownership.
• The owner enjoys full control and all profits.
• It has no separate legal existence from the owner.
• It is suitable for small-scale businesses with limited capital.
• Examples include small shops, traders, and freelancers.