Explain one disadvantage to a business of being a sole trader.

Disadvantages of sole trading include that: you have unlimited liability for debts as there's no legal distinction between private and business assets. your capacity to raise capital is limited. all the responsibility for making day-to-day business decisions is yours.

Explanation:

Other disadvantages of sole proprietorships include a lack of tax flexibility, the increased difficulty of raising money and the potential for weak management if the sole owner doesn't have all the skills or knowledge necessary to lead the company well.

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