A major disadvantage of a sole proprietorship is the fact that: A) it is expensive to establish B) the owner has unlimited personal liability C) it is easy to finance growth D) the owner pays taxes on all the income

Business Dec 25, 2020

A major disadvantage of a sole proprietorship is the fact that:

A) it is expensive to establish

B) the owner has unlimited personal liability

C) it is easy to finance growth

D) the owner pays taxes on all the income

Expert Solution

Answer:B) the owner has unlimited personal liability.

The major problem that is usually associated with the sole trader as one of the major business organizations is that the business owner is usually liable for the losses that the business may incur. As a result, the owner will be liable for those losses with the possibility of losing some of the personal assets to pay these debts.

Archived Solution

Unlocked Solution

You have full access to this solution. To save a copy with all formatting and attachments, use the button below.

Already a member? Sign In

Important Note: This solution is from our archive and has been purchased by others. Submitting it as-is may trigger plagiarism detection. Use it for reference only.

For ready-to-submit work, please order a fresh solution below.

Or get 100% fresh solution

Get Custom Quote