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Consider a business firm, organized as a proprietorship, whichhas $100,000 invested in assets—a bank loan of $80,000 and $20,000personal capital invested by the proprietor. If the firm becomesinsolvent, who is at risk? Why?

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Bunny Greenfelder
Bunny GreenfelderLv2
29 Sep 2019

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Tax-exempt all equity firm with 10,000 shares outstanding

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Answer

Proprietorship, because of ease of entry.

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