Concept:A one-man business, also called sole proprietorship, has unlimited liability.
Explanation:This type of business is owned and run by one person.
The owner and the business are not legally separate.
Therefore, the proprietor is personally responsible for all debts of the firm.
If the business cannot pay its debts, the proprietor's personal assets may be used to settle them.
This is a major disadvantage of the one-man business.
Answer:B. the proprietor is personally liable for the firm's debts.