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WAEC Commerce 2018 Objective — Question 9

Question 9 of 50 from the West African Examinations Council (WAEC) Commerce 2018 Objective paper, with the correct answer and a full explanation.

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One disadvantage of a sole proprietorship is

  • A. Quick decision-making
  • B. unlimited liabilityCorrect
  • C. pride of ownership
  • D. unlimited source of capital

Explanation

A major disadvantage of sole proprietorship is unlimited liability — the owner is personally liable for all business debts.

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