Principles of Management: Disadvantages of Sole Proprietorship

Unlimited Liability

any liability incurred extends to the owner's personal assets

Difficulty in attracting good employees

cause for sole proprietorship known for not surviving in long periods of time

Limited Life of the Firm

the existence that depends on the physical well-being of the owner

Raising Capital

this depends on the financial resources of the sole owner

Lack of ability and experience

where the business depends largely on the management skills of the owner