Sole proprietorships generally have a distinct advantage over other forms of business ownership when it comes to raising large sums of financial resources.

Question

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Sole proprietorships are typically limited in their ability to raise large sums of financial resources because the business and the owner are considered the same legal entity. This makes it difficult for the sole proprietor to attract investors or secure loans, as there is often no clear separation between personal and business finances. Other forms of business ownership, such as partnerships or corporations, may have more options for raising capital.

Sole Proprietorships Generally Have a Distinct Advantage Over Other Forms