The disadvantages for each type of business organization include legal liability for a sole proprietorship, potential conflicts between partners in a partnership, and double taxation for corporations.
Additionally, a sole proprietorship may struggle with raising capital as they have limited financial resources. Partnerships may face challenges in decision-making as disagreements among partners can arise. Corporations have more complex regulations and administrative requirements compared to other business structures, leading to higher costs and a more intricate operational process. Furthermore, corporations may also suffer from a lack of flexibility and agility in decision-making due to the hierarchical structure of management.
