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Which of the Following Is Typically the Major Factor in Limiting

Question 12

Multiple Choice

Which of the following is typically the major factor in limiting the growth of a sole proprietorship?


A) The organization of such firms tends to become extremely complicated over time.
B) It is extremely difficult to transfer control of such a firm to a new owner if the present owner dies or wishes to sell the firm.
C) The amount of money that can be raised by the firm is limited by the fact that the single owner must make good on all debts.
D) Investors have a great deal of control over the day-to-day running of the firm,leading to confusion when conflicts in direction arise.
E) The owner's personal reputation is the basis for the business.

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