What is a major disadvantage of a proprietorship?
Understand the Problem
The question is asking about the disadvantages of a proprietorship, specifically looking for the major one among the given options. This involves understanding the nature of proprietorships and their associated risks.
Answer
Unlimited personal liability.
The final answer is unlimited personal liability.
Answer for screen readers
The final answer is unlimited personal liability.
More Information
A sole proprietorship does not provide a separation between personal assets and business liabilities. This means personal assets can be at risk if the business faces legal or financial troubles.
Tips
A common mistake is assuming that personal and business liabilities are always separate, which is not the case in a sole proprietorship.
Sources
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