Joe Smith Owns a Bookstore as a Sole Proprietor

Multiple Choice

Joe Smith owns a bookstore as a sole proprietor.He is also a partner in a hotel,which borrowed $100 000 from the bank.Which of the following statements is true?

A) The bank can look to the assets of the bookstore to pay off the debt.
B) Although the bank can go after Smith's personal assets,it cannot go after the assets of the bookstore because the bookstore is a separate legal entity from Smith.
C) The bank can only go after the assets of the bookstore if Smith is the actual person who negotiated the loan with the bank.
D) The bookstore's assets will only be available to the bank if the bookstore is operated by Smith in conjunction with the hotel.
E) Because of the concept of limited liability,Smith can lose only what he has invested in the hotel.