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JAMB Commerce 2005 Question 23

Question 23

Business Units

One of the disadvantages of sole proprietorship is

  1. A.secrecy of annual reports
  2. B.pride of ownership
  3. C.limited liability
  4. D.unlimited liability
Show the answer and explanation

Answer: D (unlimited liability)

Explanation

The sole trader is personally liable for all the business debts, so his private property can be taken.