Ask Question
8 July, 02:41

What is the chief disadvantage of the sole proprietorship as a form of business organization when compared to the corporate form?

+4
Answers (1)
  1. 8 July, 03:50
    0
    The correct answer is unlimited liability for personal assets.

    Explanation:

    Both terms can be described as follows:

    Sole Proprietorship: This type of business has only one owner of the firm and he is totally responsible for any liability or loss. Liability can be recovered by acquiring the personal assets of the owner.

    Corporation: This type of business can have a number of shareholders and each shareholder has limited liability for any loss in the company. in the case of any loss, the money he invested in the company can be acquired and there is no threat to his personal assets.

    Hence, the chief disadvantage of a sole proprietorship is unlimited liability for personal assets.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “What is the chief disadvantage of the sole proprietorship as a form of business organization when compared to the corporate form? ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers