Question

limitations of sole proprietorship....​

Answer 1

Answer:

Gud evening dear ❤️

Explanation:

1. Unlimited liability of the owner

Since a sole proprietorship does not create a separate legal entity, the business owner faces unlimited personal liability for all debts incurred by the entity. In other words, if a business cannot meet its financial obligations, creditors can seek repayment from the entity’s owner, who must use his or her personal assets to repay outstanding debts or other financial obligations.

2. Limitations on capital raising

Unlike partnerships and corporations, sole proprietorships generally enjoy fewer options to raise capital. For example, the owner cannot sell an equity stake to obtain new funds. In addition, the ability to obtain loans depends on the owner’s personal credit history.

Answer 2

Answer:

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Disadvantages

• Unlimited liability of the owner. Since a sole proprietorship does not create a separate legal entity, the business owner faces unlimited personal liability for all debts incurred by the entity. ...
• Limitations on capital raising.

l hope you understand...✌️✌️