Sovi.AI - AI Math Tutor

Scan to solve math questions

QUESTION IMAGE

what is the main drawback of a sole proprietorship? they require a part…

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

Explanation:

Brief Explanations

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.

Answer:

They have unlimited personal liability