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The great disadvantage of the sole proprietor from an enterprise lies in the fact that the owner is personally liable for the debts incurred by his firm and his liability is unlimited.All his personal possessions are at risk and may be seized to meet creditors demands m the event of the business becoming insolvent.Another disadvantage of this type of firm is the strict limitation of its ability to acquire capital for expansion.
Finance is restricted to the amounts which the entrepreneur is able to provide from his own resources and whatever sums he can borrow on his own security.
What is the great disadvantage of the sole proprietor?
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The gret disadvantage is that the owner is personally liable for the debts incurred by his firm and his liability is unlimited.