Rena establishes and operates Sweet Homes, a construction-contracting outfit, as a sole proprietorship. In the course of doing business, the outfit fails to pay some of its debts. To satisfy the obligations, the firm’s creditors can go after
A. the owner’s personal assets only.
B. the firm’s assets only.
C. none of the choices—the creditors must bear the losses.
D. the firm’s assets and the owner’s personal assets.
Answer: D
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Indicate whether the statement is true or false
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a. accrued expenses b. prepaid expenses c. accrued revenues d. unearned revenues
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