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If a sole proprietor's firm owes 80,000 but its assets are only 60,000, the owner must bring in:
ANothing from personal funds
B20,000 from personal sources
C80,000 from personal sources
D60,000 from personal sources
Answer & Solution
Correct answer: B. 20,000 from personal sources
1. Liability is unlimited.
2. The gap is 80,000 minus 60,000.
3. So 20,000 comes from personal sources.
_Source: NCERT Class 11 Business Studies, Chapter 2, Forms of Business Organisation._
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