liz owns a small technology firm where she has sole control and has personal liability for any business debts that arise. this is an example of which form of legal organization?
Liz owns a small technology firm where she has sole control and has personal liability for any business debts that arise. This is an example of which form of legal organization?
Answer: The scenario described where Liz has sole control and personal liability for business debts suggests that she is running a business as a sole proprietorship. In a sole proprietorship, the business is owned and operated by one person, who is personally responsible for all business operations, debts, and obligations. This form of legal organization is characterized by simplicity in terms of formation and operation, as well as complete control by the owner over the business decisions. However, it also entails unlimited personal liability, meaning that the owner’s personal assets are at risk in case of business debts or legal issues.