One of the main disadvantages of the sole proprietorship is that the owner has unlimited liability.

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In a sole proprietorship, the owner is personally responsible for all the debts and liabilities incurred by the business. There is no legal distinction between the owner and the business, making the owner fully liable for any financial obligations of the business, including any lawsuits or damages. This means that the owner's personal assets, such as their house, car, or savings, may be at risk if the business fails to pay its debts or faces legal action. This is known as unlimited liability, which is a significant disadvantage of the sole proprietorship.

One of the Main Disadvantages of the Sole Proprietorship Is