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Disadvantages of sole proprietorship.

Answer Text:
Disadvantages of sole proprietorship.
1. There is insufficient capital for expansion because of scarce resources and lack of access to other sources.
2. He/she is overworked and has no time for recreation.
3. There is lack of continuity in the sole proprietorship i.e. the business is affected by sickness or death of the owner.
4. A sole proprietorship may not benefit from advantages realized by large scale enterprises.
5. Lack of specialization in the running of the business may lead to poor performance.
6. Due to the size of the business, sole proprietorships do not attract and retain highly qualified and trained personnel.