If the owner of a sole proprietorship is sued by a customer who slipped and fell in her store, _____.

The correct answer reflects the principle of unlimited liability that is inherent in a sole proprietorship. In this business structure, there is no legal distinction between the owner and the business. This means that the owner is personally responsible for all debts and obligations incurred by the business, including any legal claims arising from incidents that occur on the business premises.

If a customer slips and falls in the store, the sole proprietor can be held liable for damages, as any negligence in maintaining a safe environment falls directly on them as the business owner. This liability can extend to the owner’s personal assets, not just the business’s assets, highlighting the risks associated with sole proprietorships.

This principle is contrasted with other business structures, like corporations or limited liability companies, where the personal assets of the owners are generally protected from business liabilities. Thus, the owner’s potential personal exposure in this scenario underscores the importance of sound risk management strategies, such as obtaining liability insurance.