One of the disadvantages of a sole proprietorship is?

Assessment: JAMB UTME - Commerce - 2005 Subject: Commerce

Question 1 Report

One of the disadvantages of a sole proprietorship is?
Answer Details
One of the disadvantages of a sole proprietorship is unlimited liability. This means that the owner is personally responsible for all the debts and obligations of the business, even if they exceed the amount of money the owner has invested in the business. If the business can't pay its debts, the owner's personal assets, such as their house or car, may be used to pay off the debts. This is different from limited liability companies, where the owners are not personally responsible for the debts and obligations of the company.
Read lesson note on Legal Aspects Of Business (JAMB)
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