A drawback of a sole proprietorship is:
A) the unlimited liability of the partners.
B) conflicts with partners.
C) its continued existence regardless of whether the owner lives or dies.
D) difficulty in obtaining financing.
E) the complexity and cost to keep the records required by law.

Question

Quizplus · Accepted Answer

Sole proprietorships often have difficulty obtaining financing because the owner's personal assets are tied to the business, making lenders less willing to take on the risk.

A Drawback of a Sole Proprietorship Is