The main disadvantage of the sole proprietorship form of ownership is:

Question

Quizplus · Accepted Answer

The main disadvantage of the sole proprietorship form of ownership is issues of liability. As the sole proprietor has unlimited liability, he/she is personally responsible for all the debts and obligations of the business. This means that if the business cannot pay its debts or faces legal action, the owner's personal assets may be at risk. This is in contrast to other forms of ownership, such as corporations, where the owners have limited liability and their personal assets are protected.

The Main Disadvantage of the Sole Proprietorship Form of Ownership