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One of the Reasons That Successful Proprietors May Be Reluctant

Question 47

Multiple Choice

One of the reasons that successful proprietors may be reluctant to borrow money from a bank to expand their business is that


A) expanded businesses generally generate lower rates of profit
B) the bank would become a part owner
C) unlimited liability cramps ambition
D) the bank's liability insurance isn't sufficient to cover expected liabilities
E) issuing stock to finance the expansion is less costly

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