what is the main drawback of a sole proprietorship? they have unlimited personal liability they are…

what is the main drawback of a sole proprietorship? they have unlimited personal liability they are responsible to shareholders they are easy to create they require a partner

what is the main drawback of a sole proprietorship? they have unlimited personal liability they are responsible to shareholders they are easy to create they require a partner

Answer

Brief Explanations:

In a sole proprietorship, the owner's personal assets are at risk as they are liable for all business debts and obligations. This is a significant drawback compared to other business structures. The other options are incorrect - sole proprietors are not responsible to shareholders as there are no shares; being easy to create is an advantage not a drawback; and a sole proprietorship does not require a partner.

Answer:

They have unlimited personal liability