Discuss  the major disadvantages of a sole proprietorship.

Devry chicago busn 115 intro business & technology week 4 midterm

One of the major drawbacks to a sole proprietorship is its unlimited liability, lack of resources and difficulty planning for succession. A sole proprietorship means the owner is responsible for any debts the company incurs. This can lead to the possibility of seized personal assets that could be used to repay outstanding obligations. They could suffer huge financial loss if the venture goes wrong.

Because they have only themselves to depend on, their access to resources like capital or staff can be limited as sole owners. It is possible to have difficulties with succession planning, as it may prove difficult for owners to pass ownership rights upon retirement or death.

This is a snippet preview, get a complete custom solution
Access a Complete Custom-Written Paper from Our Writers, Now!!