One of the disadvantages of sole proprietorship is
- limited liability
- pride of ownership
-
unlimited liability
- secrecy of annual reports
The correct answer is: C
Explanation
One of the disadvantages of a one-man business is that the liability is unlimited. This means that in the event that the business folds up, the business owner is expected to pay his debt even if it means using his personal properties and assets to settle the business creditors.
Whereas in limited liability companies, business owners cannot use their personal assets to settle business debts because the business liability is limited to the invested amount.