Which form of business ownership has the most difficulty in raising capital?
A) a sole proprietorship
B) a general partnership
C) a limited partnership
D) a corporation

Question

Quizplus · Accepted Answer

A sole proprietorship is a business owned by one person, and the owner has unlimited liability for the debts and obligations of the business. This makes it difficult for a sole proprietor to raise capital because potential investors are often hesitant to contribute funds to a business with uncertain liability. Additionally, a sole proprietorship may have limited access to traditional forms of funding, such as loans or lines of credit, without collateral or a proven track record of revenue.

Which Form of Business Ownership Has the Most Difficulty in Raising