Darrellis sure he would like to be a sole proprietor of his business, but he knows he should

Question

weigh the pros and cons of that decision. What would be a disadvantage of sole proprietorship
for Darrell?

(1 point)

He would be the only owner and make all the decisions

He would be liable or legally responsible for all debts,

○ He would be subject to very few government regulations

○ He would be eligible to receive all after-tax income eamed in the business.

Answer 1

A disadvantage of sole proprietorship for Darrell would be:

He would be liable or legally responsible for all debts.

In a sole proprietorship, the owner is personally responsible for all debts and obligations of the business, which means that personal assets could be at risk if the business encounters financial difficulties.