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A sole proprietor's firm owes Rs. 80,000 but has assets of Rs. 60,000. What must she bring personally?
ARs. 10,000
BRs. 15,000
CRs. 20,000
DRs. 60,000
Answer & Solution
Correct answer: C. Rs. 20,000
Unlimited liability means the shortfall of 80,000 minus 60,000, which is Rs. 20,000, comes from personal property.
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