Identify the limitation of sole trading concern from the following.

Sense of accomplishment

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Ease of formation and closure

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Limited liability

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Decision making may not be balanced in all the cases.

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Solution

The correct option is D Decision making may not be balanced in all the cases.
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. Unlike a corporation or an LLC, your business doesn't exist as a separate legal entity.

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