Master Plumber Exam

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A master plumber's business is structured as a sole proprietorship. If a major lawsuit against the business results in a judgment that exceeds the company's insurance coverage and assets, which of the following is true regarding the owner's personal assets?

Only business assets can be seized to satisfy the judgment. A corporate veil protects the owner's personal assets from seizure. The owner's personal assets, such as their home and savings, can be seized to satisfy the judgment. Personal assets can only be seized if the owner is found guilty of criminal negligence.

Correct Answer:

The owner's personal assets, such as their home and savings, can be seized to satisfy the judgment.

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