Which of the following is NOT an advantage of a sole proprietorship?independence in business decisionseasy to organizekeeping all profitslimited liability

To identify which of the following options is NOT an advantage of a sole proprietorship, let’s analyze each option:

1. Independence in business decisions: This is indeed an advantage of a sole proprietorship. The owner has full control over all business decisions without needing to consult others.

2. Easy to organize: Sole proprietorships are generally easy to set up and operate, making this an advantage.

3. Keeping all profits: A sole proprietor can keep all the profits generated by the business, which is a significant advantage.

4. Limited liability: This is NOT an advantage of a sole proprietorship. In fact, sole proprietors have unlimited personal liability for the debts and obligations of the business, which means their personal assets can be at risk.

Final Answer

The option that is NOT an advantage of a sole proprietorship is limited liability.