Which form of a business does not have the capacity to borrow capital in its own right?
A) an unlimited proprietorship
B) a sole proprietorship
C) an unlimited corporation
D) a sole corporation

Question

Quizplus · Accepted Answer

A sole proprietorship does not have a separate legal identity from its owner, so it cannot borrow capital in its own right; the owner must borrow personally.

Which Form of a Business Does Not Have the Capacity