Study the following case/situation and express your opinion:If the bus

1.	Study the following case/situation and express your opinion:If the business is a sole trading concern with a capital of Rs 25,000, but the debts are amounting to Rs 50,000.1. Is the entrepreneur liable to pay his creditors.2. Give reasons.
Answer» 1. Yes, he has to pay to his creditors. 2. A sole trading concern has unlimited liability therefore, he has to pay his creditors by selling off his private property.

Study the following case/situation and express your opinion:If the business is a sole trading concern with a capital of Rs 25,000, but the debts are amounting to Rs 50,000.1. Is the entrepreneur liable to pay his creditors.2. Give reasons.

Answer»

1. Yes, he has to pay to his creditors.

2. A sole trading concern has unlimited liability therefore, he has to pay his creditors by selling off his private property.