Question

The disavantage of a sole proprietorship rasing captial vs A partnership or cooperation

The disavantage of a sole proprietorship rasing captial vs A partnership or cooperation

Homework Answers

Answer #1

Disadvantages

Sole Propritorship Partnership Corporation
Proprietor is the only source of capital Capital is bought by all the partners and also can sell the interest of one partner to other person as per operating agreement Share stocks are sold to raise capital

1.Proprietor is the only source of raising capital

2.His own capital may be limitedand his personal assets may be insufficient for raising more loans

3. Shortage of fund may reduce the business growth

4. All liability arising in the course of business has to be met with this single source.

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