Which is not true about running a sole proprietorship?

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2026-03-06 20:45

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One common misconception about running a sole proprietorship is that the owner has limited liability; in reality, the owner is personally liable for all debts and obligations of the business. This means that personal assets can be at risk in the event of business-related lawsuits or debts. Additionally, sole proprietorships often face challenges in raising capital compared to corporations, making it harder to expand or invest in the business.

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