Buy custom Selecting A Form of Business Ownership
Essay's paper info
| Topic: |
Business
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| Number of pages / Number of words: |
9 / 2469 |
Essay's paper body
Disadvantages of a Sole Proprietorship
1. Just as the owner enjoys all profits, the sole proprietor also incurs all losses. There are no other owners to share this burden.
2. There is no limit on the amount of debts for which a sole proprietor is liable. For example, if the business is sued, the owner is personally liable for the entire judgment...
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This unlimited liability is a major drawback of owning a sole proprietorship.
3. A sole proprietor often has very limited access to funds. This means that businesses that require heavy initial investments are seldom operated as sole proprietorships.
4. Sole proprietors may have limited skills. They may find themselves forced to make decisions in areas of business operations where they lack expertise...
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General points of the essay
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