What is the primary disadvantage of a sole proprietorship that a corporation overcomes?
A) tax complications
B) unlimited liability
C) ease of start-up
D) lack of secrecy

Question

Quizplus · Accepted Answer

The primary disadvantage of a sole proprietorship is unlimited liability, which means that the owner is personally responsible for any financial losses or legal issues that the business may face. In a corporation, shareholders have limited liability, which means they are only responsible for the amount of money they have invested in the company. This is a significant advantage as it protects shareholders' personal assets from being at risk due to the company's liabilities.

What Is the Primary Disadvantage of a Sole Proprietorship That