A significant disadvantage of owning a sole proprietorship is the:
A)Possibility of limited liability.
B)Heavy tax liability that must be assumed.
C)Overwhelming time commitment often required of the owner.
D)Lack of incentives to motivate the owner.

Question

Quizplus · Accepted Answer

One of the significant disadvantages of owning a sole proprietorship is that the owner has to bear all the responsibility for the business, which often results in an overwhelming time commitment. As the sole proprietor, the owner must oversee all aspects of the business, from marketing to accounting. This can be demanding and may leave little time for personal pursuits. The other options, such as limited liability, heavy tax liability, and lack of incentives, are not necessarily disadvantages of owning a sole proprietorship.

A Significant Disadvantage of Owning a Sole Proprietorship Is The