Which of the following is NOT an advantage of a sole proprietorship?independence in business decisionseasy to organizekeeping all profitslimited liability
Question
Which of the following is NOT an advantage of a sole proprietorship?independence in business decisionseasy to organizekeeping all profitslimited liability
Solution
The option that is NOT an advantage of a sole proprietorship is "limited liability". In a sole proprietorship, the owner is personally liable for all the business's debts and obligations. This means that if the business incurs a debt or is sued, the owner's personal assets can be used to settle these obligations. This is unlike corporations where the owners/shareholders have limited liability, meaning they are not personally responsible for the business's debts and obligations.
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