The 17-year-old was project manager of the losing team this week and was criticised by her own teammates for her lack of organisation.
Alice's team struggled to agree on a pricing for their tea party and her sub-team complained that the "traditional with a twist" theme for the tea party wasn't clear enough.
The farmer's daughter brought Maria and Navdeep back into the boardroom, but she couldn't defend her corner well enough in the final showdown.
"I don't think you did get the business plot here to be perfectly frank, Alice, I think a lot of things ran away," said Sugar.
"And I've decided that due to the poor business logic in this particular task, and the way it was conducted, it is with regret that, Alice - you're fired."
Speaking after her firing, Alice said: "The other two girls maybe don't have the entrepreneurial spirit within them, however they believed in themselves a lot more than I did, and that is never, ever going to happen again!"
Young Apprentice continues on Thursday nights at 8pm on BBC One.