Which of the following is a disadvantage of a sole proprietorship?

A sole proprietorship is a business structure where an individual owns and operates the business. One significant disadvantage of this structure is that it is limited to the life of the owner. If the owner dies, retires, or decides to close the business, the sole proprietorship ceases to exist. This lack of continuity can make it challenging to attract investors or secure funding, as potential partners may see the business's survival as uncertain.

In contrast, other structures, such as corporations or limited liability companies (LLCs), have a more extended lifespan that is not directly tied to an individual owner. This can make them more appealing for long-term planning and investment. The other options reflect advantages rather than disadvantages. For instance, a sole proprietorship enjoys certain tax benefits and simplicity in operations but does not provide protection from debts and obligations, posing a risk to the owner's personal assets.

The nature of sole proprietorship limits the transferability of ownership interest, making it less flexible compared to partnerships or corporations, which facilitate easier transitions of ownership. Thus, the limited lifespan of a sole proprietorship is a key characteristic that can pose challenges for continuity and long-term success.