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What is the disadvantage of being a sole proprietorship firm owner?

7. What is the disadvantage of being a sole proprietorship firm owner?

1. Personal Control
2. Easy Formation
3. Unlimited Liability
4. Faster Decision Making

Answer: C) Unlimited Liability

Explanation:

As a sole owner, you will have a limitless risk for any obligations of the business. This implies that, on account of a claim, someone could come later your resources just like your business resources.