Which of the following is typically the major factor in limiting the growth of sole proprietorships?
A) The organizational structure of such firms tends to become extremely complicated over time.
B) It is extremely difficult to transfer control of such firms to a new owner if the present owner dies or wishes to sell the firm.
C) The amount of money that can be raised by such firms is limited by the fact that the single owner must make good on all debts.
D) Investors have a great deal of control over the day-to-day running of such firms, leading to confusion when conflicts in direction arise.
Answer: C
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A) $12.44 B) $12.94 C) $13.46 D) There is not enough information to answer this question.
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What will be an ideal response?
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