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WAEC Commerce 2018 Question 9

Question 9

Business Units

One disadvantage of a sole proprietorship is

  1. A.quick decision making.
  2. B.unlimited liability.
  3. C.pride of ownership.
  4. D.unlimited sources of capital.
Show the answer and explanation

Answer: B (unlimited liability.)

Explanation

A sole trader can lose personal property to pay business debts because his liability is unlimited.