Multiple choice

The major disadvantage of owning a sole proprietorship is:

  1. Limited access to credit

  2. Unlimited liability

  3. Limited skills needed to run the business

  4. Sole proprietorships end when the owner dies

Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Unlimited liability means the owner is personally responsible for all business debts and legal obligations. This puts the owner's personal assets at risk.