Devry chicago busn 115 intro business & technology week 4 midterm
The major disadvantages of a sole proprietorship include unlimited liability, limited resources and potential difficulty with succession planning. With a sole proprietorship, the individual is personally liable for all debts incurred by the business which means that their personal assets can be seized to pay off any outstanding liabilities. This exposes them to potentially large financial losses if something goes wrong with the venture.
Additionally, as a sole owner they are often limited in terms of access to resources such as capital or personnel since they only have themselves to rely on. Finally, there may also be difficulties associated with succession planning since it can be complicated to transfer ownership rights when owners reach retirement age or pass away due to lack of legal structure in place compared to other forms of business organization.