Mrs. Meadows opened a biscuit shop called The Biscuit Bakery. The business was not incorporated. Whenever she ordered supplies, she was careful to sign the contract in the name of the business, not personally: The Biscuit Bakery by Daisy Meadows. Unfortunately, she had no money to pay her flour bill. When the vendor threatened to sue her, Mrs. Meadows told him that he could only sue the business because all the contracts were in the business’s name. Will Mrs. Meadows lose her dough?

Sole proprietorship business and the business owner are one and the same in law parlance,hence suing the business is automatically suing the owner of the business .

Such businesses do not have a limited liability status where the debt of the business is limited to the amount invested in the assets of the business,any debts owed by Biscuit Bakery is a personal debt of Mrs Meadows and as a result she lose her dough.

andromache andromache · Answer 2 · 2021-11-30T13:22:26+01:00

Yes, due to business is sole proprietorship business

The following information is considered:

A Sole proprietorship business and the business owner are considered to be one and similar law should be applied for the business and business person.
Also, in this there is unlimited liability status. In this, there is always the personal debt due to which she lose her dough.

Therefore we can conclude that Yes, due to business is sole proprietorship business

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