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Question
what is the main drawback of a sole proprietorship?
they require a partner
they have unlimited personal liability
they are responsible to shareholders
they are easy to create
A sole proprietorship is owned and run by one individual. The owner has unlimited personal liability, meaning their personal assets can be used to cover business debts. "They require a partner" is incorrect as sole proprietorships are single - owner. "They are responsible to shareholders" is for corporations. "They are easy to create" is an advantage, not a drawback.
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They have unlimited personal liability