Sole proprietors can look only to their own resources to finance the business operation. They cannot sell shares and are restricted to their own ________ standing when borrowing money to finance the business.
A) asset
B) debt
C) profit
D) credit
E) retained earnings

Question

Quizplus · Accepted Answer

Sole proprietors rely on their personal credit standing when borrowing money because they cannot issue shares or use other means typically available to corporations to secure financing.

Sole Proprietors Can Look Only to Their Own Resources to Finance