What is a reason that owning a sole proprietorship business can be risky?

A. You cannot hire employees.

B. You have limited decision-making capabilities.

C. You cannot keep your profit.

D. There are limited financial resources.

The correct option is D.

A sole proprietorship refers to a business entity that is established by only one individual, it is also called one man business. A sole proprietorship has some disadvantages and one of them is that the entrepreneur will only have access to a limited amount of financial resources, this is because he is limited in the ways which he can use to raise capital for his business. For instance, he can not raised capital by selling shares to the public.