Two disadvantages of a proprietorship are (1) the relative difficulty of raising new capital and (2) the owner's unlimited personal liability for the business' debts.

Question

Quizplus · Accepted Answer

Proprietorship is a business owned by one person who is responsible for all aspects of the business. Two major disadvantages of proprietorship are difficulty in raising capital and unlimited personal liability for business's debts. Therefore, the statement is true.

Two Disadvantages of a Proprietorship Are (1) the Relative Difficulty