One of the major disadvantages of a sole proprietorship is
A)that there is unlimited liability to the owner.
B)the simplicity of decision making.
C)low organizational costs.
D)low operating costs.

Question

Quizplus · Accepted Answer

The major disadvantage of a sole proprietorship is that the owner has unlimited liability for the business's debts and obligations. This means that personal assets, such as homes and cars, can be used to pay off business debts in the event of bankruptcy or lawsuit. While there are benefits to sole proprietorship, such as simplicity of decision making and low organizational and operating costs, this risk of unlimited liability often outweighs these benefits.

One of the Major Disadvantages of a Sole Proprietorship Is