The drawback(s) of proprietorship include:
A) the unlimited liability of the partners.
B) conflicts with partners.
C) existence regardless of whether the owners live or dies.
D) difficulty in obtaining financing.
E) complexity and cost.

Question

Quizplus · Accepted Answer

The main drawback of proprietorship is difficulty in obtaining financing because the business is considered as an extension of the owner's personal assets and therefore lenders may be hesitant to provide loans. The other options are not applicable to proprietorship.

The Drawback(s) of Proprietorship Include