What are the disadvantages of a sole proprietorship business?

Open in App

Solution

The disadvantages of a sole proprietorship business is:

Unlimited personal liability

It is difficult to raise money

Less efficient and time consuming as one person needs to take all decisions.

Also read:

Sole Proprietorship

Difference Between LLP and Partnership

Difference Between Sole Proprietorship and Partnership

Difference Between Partnership Firm and Company

Difference Between Dissolution of Partnership and Dissolution of Firm

Learn about more commerce questions and answers from different topics in business studies, economics and accountancy from our website.

Suggest Corrections

Similar questions

What is the disadvantage of a sole proprietorship?

Why is partnership regarded as a viable option for overcoming the disadvantages of financing and managing an expanding business under sole proprietorship?

Q. What are the different options to expand sole proprietorship business?

Q. Fill in the blanks:
(a) Sole proprietorship is the _______ from of business enterprises, (latest / oldest)
(b) Sole proprietorship is most suitable form for _______ business, (small / large)
(c) Liability of a sole proprietor is ________ (limited / unlimited)
(d) Sole proprietorship _______ a separate legal entity, (has / does not have)
(e) It is ______ to set up a sole proprietorship firm,(easy / difficult)

Q. Which one of the following is NOT a feature of sole proprietorship business?

Join BYJU'S Learning Program