One of the major disadvantages of a sole proprietorship is the:
A)Possibility of disagreements between owners.
B)Unlimited liability the owner has for the debts of the firm.
C)Fact that any income earned by this type of business is taxed twice.
D)High cost of starting or ending the company.

Question

Quizplus · Accepted Answer

A major disadvantage of sole proprietorship is that the owner has unlimited liability for the debts of the firm, meaning if the business is sued, the owner's personal assets can be at risk to pay the debts.

One of the Major Disadvantages of a Sole Proprietorship Is