What is the primary disadvantage of both, a sole proprietorship and a partnership that a corporation overcomes?
A) no access to capital
B) taxing complications
C) unlimited liability
D) ease of start-up
E) lack of secrecy

Question

Quizplus · Accepted Answer

The primary disadvantage of both a sole proprietorship and a partnership is unlimited liability, which means the owners are personally responsible for all business debts and legal obligations. In a corporation, the owners' liability is limited to the amount of their investment in the company, which is a significant advantage. Therefore, the best choice is C.

What Is the Primary Disadvantage of Both, a Sole Proprietorship