Colleen wants to start a crafting business as a side job and is considering forming it as a Sole Proprietorship. In your opinion , what disac Ivantages should she be most concerned about? A. Unlimited liability B. Limited sources of funds C. Lack of continuity D. Lack of qualified employees

## Step 1<br />The question is asking us to identify the most significant disadvantage for Colleen if she decides to start her crafting business as a Sole Proprietorship. A Sole Proprietorship is a type of business structure that is owned and run by one individual. There is no legal distinction between the owner and the business.<br /><br />## Step 2<br />Option A, "Unlimited liability," refers to the fact that the owner is personally responsible for all the debts and obligations of the business. This means that if the business incurs debt or legal issues, the owner's personal assets could be at risk.<br /><br />## Step 3<br />Option B, "Limited sources of funds," is not a unique disadvantage of a Sole Proprietorship. All types of businesses might face challenges in securing funds, regardless of their structure.<br /><br />## Step 4<br />Option C, "Lack of continuity," suggests that the business might not be able to continue operations if the owner is unable to manage it. While this is a potential concern, it is not the most significant disadvantage of a Sole Proprietorship.<br /><br />## Step 5<br />Option D, "Lack of qualified employees," is not a direct disadvantage of being a Sole Proprietorship. The ability to attract and retain qualified employees depends on various factors, including the nature of the business, its location, and its reputation, among others.<br /><br />## Step 6<br />Based on the given options, the most significant disadvantage of a Sole Proprietorship is "Unlimited liability" (Option A), as it directly impacts the personal financial security of the owner.