Which of the following is a disadvantage of operating as a s

Which of the following is a disadvantage of operating as a sole proprietorship? A.) Sole proprietorships have complex legal and accounting requirements B.) The owner of the sole proprietorship generally carries unlimited liability for the debts and liabilities of the business C.) A sole proprietorship has only limited flexibility in choosing a tax year D.) A sole proprietorship may consist of one or many individuals

Solution

B.) The owner of the sole proprietorship generally carries unlimited liability for the debts and liabilities of the business.

A sole proprietorship is a type of enterprise that is owned and run by one natural person and in which there is no legal distinction between the owner and the business entity.