Commerce WAEC

One disadvantage of a sole proprietorship is?

A. quick decision making
B. unlimited liability
C. pride of ownership
D. unlimited source of capital

Correct Answer: Option B

B. unlimited liability

Explanation

The main disadvantages to being a sole proprietorship are: Unlimited liability: Your small business, in the form of a sole proprietorship, is personally liable for all debts and actions of the company. This means that, in the event of winding up, the personal properties of the sole proprietor would be used the settle the debts of the business.

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