Which of the following is a disadvantage of sole proprietor ownership?
A) ease of dissolution
B) no special taxation
C) ease of formation
D) difficulty in raising capital

Question

Quizplus · Accepted Answer

Difficulty in raising capital is a significant disadvantage of sole proprietor ownership. Without other partners or shareholders, the proprietor has limited options for raising funds to invest in the business. This can also make it challenging to finance growth or expansion, as lenders and investors may be hesitant to provide funding without additional owners to share the risk.

Which of the Following Is a Disadvantage of Sole Proprietor