One of the major disadvantages of a sole proprietorship is the:
A)unlimited liability the owner has for the debts of the firm.
B)possibility of disagreements between owners.
C)fact that any income earned by this type of business is taxed twice.
D)high cost of starting or ending the company.

Question

Quizplus · Accepted Answer

Unlimited liability means that the owner is personally responsible for all debts and liabilities of the business. This can be a major disadvantage because it puts the owner's personal assets at risk.

One of the Major Disadvantages of a Sole Proprietorship Is