GK
BUSINESS ECONOMICS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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A disadvantage of a sole proprietorship is
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Difficulty starting the business
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unlimited liability
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That the owner must share profits with others
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double taxation of earnings
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Explanation:
Detailed explanation-1: -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.
Detailed explanation-2: -Disadvantages of Unlimited Liability Unlimited liability makes the owners legally responsible for all the debts and liabilities of the business. In a business with unlimited liability, both the business and personal assets of the owners may be at risk.
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