The biggest disadvantage of the sole proprietorship is _________________.
A) Unlimited liability
B) Double taxation
C) Limited access to capital
D) Total control

Question

Quizplus · Accepted Answer

The biggest disadvantage of the sole proprietorship is unlimited liability. This means that the owner is personally responsible for all the debts and liabilities of the business. In other words, if the business can't pay its debts or is sued, the owner's personal assets are at risk. This can be a major drawback for entrepreneurs who want to start a business but don't want to risk their personal financial security.

The Biggest Disadvantage of the Sole Proprietorship Is _________________