Which of the following choices is a disadvantage of organizing a business as a sole proprietorship?(1 point)

Question

Responses

The sole proprietor has the responsibility to make all business decisions.
The sole proprietor has the responsibility to make all business decisions.

The sole proprietor must complete both personal and business income taxes.
The sole proprietor must complete both personal and business income taxes.

The sole proprietor must personally guarantee all bank loans.
The sole proprietor must personally guarantee all bank loans.

A sole proprietorship is the most complicated form of business organization.

Answer 1

The correct response indicating a disadvantage of organizing a business as a sole proprietorship is:

The sole proprietor must personally guarantee all bank loans.

This is a significant disadvantage because it means that the owner's personal assets could be at risk if the business incurs debt or fails to repay loans.