Which of the following statements is a disadvantage of a sole proprietorship?
A)The taxation treatment of partnerships can be a disadvantage.
B)It is more expensive to establish than a company.
C)It can be difficult to raise funds for expansion.
D)There are more regulatory requirements than a company.

Question

Quizplus · Accepted Answer

As a sole proprietorship, the owner has limited options to raise funds for expansion since they can only rely on their own personal assets or borrow from lenders. This can limit the growth potential of the business.

Which of the Following Statements Is a Disadvantage of a Sole