One disadvantage of a sole proprietorship business entity is that it is restricted to the principal and the principal's immediate family in terms of number of employees who may work for the business.

Question

Quizplus · Accepted Answer

This statement is false. While a sole proprietorship may initially start with just the principal as the only employee, there is no legal restriction on the number of employees that can be hired in the future. However, the business owner may face limitations based on their financial resources and management capabilities.

One Disadvantage of a Sole Proprietorship Business Entity Is That