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Question
The greater handicap of a sole proprietorship is ______.
Options
Small size
Limited Capital
Unlimited Liability
None of these
MCQ
Fill in the Blanks
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Solution
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.
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Chapter 17: Various Business Entities - EXERCISES [Page 253]
