The major disadvantage of a sole proprietorship is the fact that the owner of the establishment has limited liability.

Question

Quizplus · Accepted Answer

The statement is incorrect. The major disadvantage of a sole proprietorship is that the owner has unlimited liability, meaning they are personally responsible for all debts and legal issues of the business. This puts the owner's personal assets at risk if the business cannot meet its financial obligations.

The Major Disadvantage of a Sole Proprietorship Is the Fact