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Which of the following is a disadvantage of a sole proprietorship?

A. May have issues with government regulations
B. May have problems resulting from frozen investments
C. May have difficulty raising money for business operations
D. May have a more complicated tax structure


Sagot :

Final answer:

The disadvantages of a sole proprietorship include personal liability, difficulty raising money, and a more complicated tax structure.


Explanation:

The disadvantages of a sole proprietorship include:

  1. Personal liability: Owner may lose personal assets in case of bankruptcy.
  2. Difficulty raising money: Challenging to gather funds for business operations.
  3. More complicated tax structure: Taxes and obligations entirely fall on the owner.

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