A key reason most sole proprietorships remain relatively small is that:
A)they have limited ability to raise the funds necessary to finance growth.
B)they involve extensive paperwork and incur heavy costs.
C)heavy taxes are levied directly on their earnings as a business.
D)their stockholders would rather receive dividends than have earnings reinvested to finance growth.

Question

Quizplus · Accepted Answer

Sole proprietorships are typically financed by the personal funds of the owner and have limited ability to raise additional funds through loans or equity financing. This can constrain their ability to grow and expand beyond a certain size.

A Key Reason Most Sole Proprietorships Remain Relatively Small Is