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.

Question

Quizplus · Accepted Answer

Sole proprietors cannot sell shares of the business and are therefore restricted to their own credit standing when borrowing money to finance the business. They may use their personal assets, profits, and retained earnings to finance the business, but they are still personally liable for any debt incurred.

Sole Proprietors Can Look Only to Their Own Resources to Finance