Question

The greater handicap of a sole proprietorship is ______.

विकल्प

• Small size

• Limited Capital

• Unlimited Liability

• None of these

Answer 1

The greater handicap of a sole proprietorship is unlimited liability.

Explanation:

The most significant disadvantage of a sole proprietorship is unlimited liability, which means that the owner is fully liable for all of the company’s debts, even if they are incurred using personal assets.