darrell is sure he would like to be a sole proprietor of his business but he knows he should weigh the pros and cons of that decision. What would be a disadvantage of sole proprietorship for Darrell

Answer 1

A disadvantage of sole proprietorship for Darrell could be the unlimited liability. As a sole proprietor, Darrell would be personally liable for all debts and obligations of the business. This means that if the business incurs any debts, creditors can go after Darrell's personal assets and income to satisfy those debts. Consequently, he could risk losing personal savings, property, or any other assets not protected by limited liability.