Among the disadvantages of the one-man business is the fact that______

  • A its capital may not be increased without government permission
  • B the proprietor is personally liable for the firm's debts
  • C the proprietor is not able to obtain credit
  • D the proprietor may not sue for bad debts

The correct answer is B. the proprietor is personally liable for the firm's debts

A one man business also sole proprietorship is run by an individual. The debts of the proprietor can affect the firm.

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