Which disadvantage is common to both sole proprietorships and partnerships?
A)single taxation
B)complexity and costs in setting up
C)depersonalization
D)personal liability of owner(s)

Question

Quizplus · Accepted Answer

Both sole proprietorships and partnerships have the disadvantage of personal liability of the owner(s) for the business's debts and obligations. This means that if the business cannot pay its bills or faces legal action, the owner(s) may be personally responsible for covering these costs.

Which Disadvantage Is Common to Both Sole Proprietorships and Partnerships