Final answer:
Using your own money in a business can have both pros and cons. One advantage is that you have complete control over the finances and decision-making of your business. However, there are also disadvantages, including personal liability and limited access to capital.
Step-by-step explanation:
Using your own money in a business can have both pros and cons. One advantage is that you have complete control over the finances and decision-making of your business. You don't have to answer to any outside investors and can make all the financial decisions on your own. However, there are also disadvantages. One major disadvantage is the personal liability the owner assumes. If the business fails and goes into debt, the owner is personally responsible for the debts and obligations of the company.
This means that the owner's assets could be at risk. Another disadvantage is that using your own money might limit the amount of capital you can invest in your business. Without outside investors, it can be more difficult to raise large sums of money for startup costs or expansion. Overall, using your own money in a business can give you control and independence, but it also comes with risks and limitations.