What are 2 disadvantages of a sole propretorship?

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2026-03-17 03:15

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One disadvantage of a sole proprietorship is that the owner has unlimited personal liability, meaning their personal assets can be at risk if the business incurs debt or legal issues. Additionally, sole proprietorships may face challenges in raising capital, as they often rely on personal funds or loans, making it harder to grow compared to corporations that can attract investors.

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