"Unlimited Personal Liability" and the current financial crisis

Abstract

The term "Unlimited Personal Liability" refers to a concept of law in the business world. It is related to the sole proprietorship business scheme: that is to say a form of business owned by one person. This concept holds a business owner personally responsible for all debts and financial failures of the business. In this scheme there is no intermediary between the owner and the company and they are legally considered one single person. It mostly refers to small size businesses.