One disadvantage of sole proprietorship is the ________.
A) possibility of disagreements between different owners
B) unlimited liability the owner has for the debts of the company
C) fact that any income earned by this type of business is taxed twice
D) cost of starting or ending the company is higher than other businesses
E) burden of all the required paperwork that must be filed

Question

Quizplus · Accepted Answer

With sole proprietorship, the owner is personally liable for all the debts and obligations of the business. This puts their personal assets at risk in case of business failure or bankruptcy, making it a significant disadvantage.

One Disadvantage of Sole Proprietorship Is the ________