All of the following are advantages of a sole proprietorship except ________.
A) creating one is easy and inexpensive
B) unlimited liability
C) it is not subject to double taxation
D) the owner maintains complete control of the business
E) business losses can be deducted against the sole proprietor's other sources of income

Question

Quizplus · Accepted Answer

Unlimited liability is a disadvantage of a sole proprietorship, not an advantage. As the sole proprietor, the owner is personally responsible for all debts and legal obligations of the business, which means their personal assets can be used to pay off business debts or legal judgments.

All of the Following Are Advantages of a Sole Proprietorship