Question

The owners of sole proprietorships and partnerships have A. unlimited liability. B. general incorporation laws. C. greater ability to raise funds than a corporation. D. relatively high organization costs.

Answer 1

A) unlimited liability.

Step-by-step explanation:

Sole proprietorships and partnerships offer several advantages, specially since the business themselves do not pay taxes, you are your own boss, they are easy to set up, etc., but their greatest disadvantage is that their owners are liable for all the debts and obligations of both sole proprietorships and partnerships. That means that if the business goes bankrupt, your creditors can go after your personal assets.