Which of the following is typically considered a disadvantage of sole proprietorships? multiple choice income taxes are paid by both the business and its owner. the business is considered a separate legal entity from its owner. owner is personally liable for all debts of the business. establishing the business usually requires legal assistance.

The answer is: Owner is personally liable for all debts of the business.

Explanation:

Sole proprietorship is the oldest type of business, where a single person is the owner of a business.

Some of the advantages of sole proprietorship are:

the simplest and most flexible business structure.owner has complete control and full decision making powerseasy to close down the businessprofits are taxed at the owner´s tax rate

Some of the disadvantages of sole proprietorship are :

owner is personally liable for all debts of the business .- if the business goes bankrupt, usually the owner does alsodeath or illness of the owner will lead to the end of the business.difficulties in raising capital from outside sources

The answer is true for many reasons