The growth of both sole proprietorships and partnerships is frequently limited by the firm's:
A) double taxation.
B) bylaws.
C) inability to raise cash.
D) limited liability.
E) agency problems.

Question

Quizplus · Accepted Answer

Sole proprietorships and partnerships rely on the personal finances of the owner(s) for financing, which limits their ability to raise cash and can restrict growth opportunities. This is in contrast to corporations, which can raise capital through stock offerings and other means. Double taxation (A), bylaws (B), limited liability (D), and agency problems (E) are not necessarily limiting factors for these types of businesses.

The Growth of Both Sole Proprietorships and Partnerships Is Frequently