ENTREPRENEURSHIP

Detailed explanation-1: -Disadvantages. Some disadvantages of unlimited liability are as follows: Unlimited liability makes the owners legally responsible for all the debts and liabilities of the business. They may have to face negative consequences in case the decisions are not able to meet the target.

Detailed explanation-2: -Unlimited liability Among one of the biggest disadvantages of a sole proprietorship is unlimited liability. This liability not only spans the business but the business owner’s personal assets. Debt collectors can access your savings, property, cars, and more to see a debt repaid.

Detailed explanation-3: -The biggest disadvantage of a sole proprietorship is that there is no separation between business assets and personal assets. This means that if anyone sues the business for any reason, they can take away the business owner’s cash, car, or even their home.

Detailed explanation-4: -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-5: -Unlimited liability means that the business owners are personally liable for any loss the business makes. Sole traders and partnerships often have unlimited liability.