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Explain one disadvantage to a sole trader of having unlimited liability

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kirabowen15
When a sole trader has unlimited liability this could pose as a problem to that individual. This is because in the case a sole traders business goes down hill or goes bankrupt that sole trader alone is responsible for all the debts and therefor has to repay all these debts by their self. If it’s a case that’s the sole trader is unable to repay these debts then the sole trader is liable of getting their personal items confiscated as collateral.
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