Question

One disadvantage of a sole proprietorship is the difficulty of forming high startup costs requirement to have a board of directors unlimited liability True or false

Answer 1

False. The difficulty of forming a sole proprietorship does not typically involve high startup costs and a requirement to have a board of directors. However, one disadvantage of a sole proprietorship is the unlimited liability that the owner faces.

Step-by-step explanation:

False. One disadvantage of a sole proprietorship is the unlimited liability that the owner faces. This means that the owner is personally responsible for all the debts and liabilities of the business, and their personal assets can be used to satisfy business debts. However, the formation of a sole proprietorship does not typically require a board of directors or high startup costs.

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