Question

question 10 (1 point) listen peter is a pharmaceutical graduate and wants to start his own pharmacy in a small town. which of the following will likely be the biggest disadvantage peter will face if he organizes the pharmacy as a sole proprietorship? 1) the complexity of the organization selling drugs, groceries, newspapers, and lottery tickets 2) the cost of starting the business with the different lines of product 3) unlimited personal liability for any debts or lawsuits against the pharmacy 4) the difficulty of distribution of such a diverse line of products

Explanation:

A sole proprietorship means the owner (Peter) has unlimited personal liability. This implies that if the pharmacy incurs debts or faces lawsuits, Peter's personal assets (like his savings, house, etc.) can be used to satisfy those obligations. In contrast, options 1 (complexity of organization), 2 (cost of starting), and 4 (distribution difficulty) are not the most significant and unique disadvantages of a sole - proprietorship compared to the unlimited liability aspect.

Answer:

1. unlimited personal liability for any debts or lawsuits against the pharmacy