one disadvantage of a sole proprietorship is?
Take Free Practice Test On 2026 JAMB UTME, Post UTME, WAEC SSCE, GCE, NECO SSCE
Correct Answer: Option B
Explanation:
The main disadvantages to being a sole proprietorship are: Unlimited liability: Your small business, in the form of a sole proprietorship, is personally liable for all debts and actions of the company. This means that, in the event of winding up, the personal properties of the sole proprietor would be used the settle the debts of the business.
The main disadvantages to being a sole proprietorship are: Unlimited liability: Your small business, in the form of a sole proprietorship, is personally liable for all debts and actions of the company. This means that, in the event of winding up, the personal properties of the sole proprietor would be used the settle the debts of the business.