You Run a Fitness Studio That Trains Individual Clients and Small

Multiple Choice

You run a fitness studio that trains individual clients and small groups. Because you are the only trainer, you run the business as a sole proprietorship. A client was injured and sues you for $1,000,000. You have no liability insurance on the business. What is your personal liability if you lose the lawsuit?

A) $0
B) $50,000, because that is how much money you have in the business account
C) $500,000, because that is how much your landlord paid for the building you are in
D) $1,000,000