Business law Sole proprietorships
Tom owns ABC Sales, a sole proprietorship. Tom has incurred substantial debts from the operation of the business, including 2 years remaining on a lease at $2,000 / month.
Tom is forced to close the ABC Sales, owing the Landlord $48,000 on the Lease. There is Zero money in the ABC Sales bank account, and no other ABC Sales assets.
Please discuss:
When the Landlord sues to recover his $48,000.00, whom will he sue?
Is Tom personally liable for the debt? Why or Why not?
If Tom is liable, can he be at risk to lose personal assets? Why or Why not?
Only need 1/2 of a page written.
No sources needed.
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