GCE Commerce 2024 Objective — Question 9
Question 9 of 50 from the General Certificate of Education (GCE) Commerce 2024 Objective paper, with the correct answer and a full explanation.
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A disadvantage of a sole trader is that he
- A. A. pays tax to government
- B. B. has limited liability
- C. C. has unlimited liabilityCorrect
- D. D. does not share profit with others
Explanation
A major disadvantage of sole proprietorship is unlimited liability - the owner is personally liable for all business debts.
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