BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -The disadvantages of an unlimited liability company are: all assets of company members are liable to meet company obligations; company members are closely connected to the company and also greatly depend on each other; the form of legal organisation is riskier than that of corporate entities (e.g. LLC).

Detailed explanation-2: -you have unlimited liability for debts as there’s no legal distinction between private and business assets. your capacity to raise capital is limited. all the responsibility for making day-to-day business decisions is yours. retaining high-calibre employees can be difficult.

Detailed explanation-3: -Answer and Explanation: The statement is FALSE. Unlimited liability is a disadvantage of all sole proprietorships, and that is why limited liability is one of the biggest advantages of corporations. Unlimited liability means that the owner of a business remains personally liable for any actions against the business.

Detailed explanation-4: -Disadvantages of a partnership include that: the liability of the partners for the debts of the business is unlimited. each partner is ‘jointly and severally’ liable for the partnership’s debts; that is, each partner is liable for their share of the partnership debts as well as being liable for all the debts.