Thomas started an engineering company as a sole proprietorship two years ago with only three employees. Thomas is finding it hard to acquire new employees. Which of the following is most likely the reason for the company's inability to attract new employees?
A) The company may not be able to pay the high salaries and perks that wellestablished companies might pay their employees.
B) The company may not be regulated by the government and the federal agencies.
C) The company may impose heavy taxes on employees' salaries.
D) The company may expose the employees to unlimited liability for any debts incurred on the owners of the company.

Question

Thomas started an engineering company as a sole proprietorship two years ago with only three employees. Thomas is finding it hard to acquire new employees. Which of the following is most likely the reason for the company's inability to attract new employees?
A) The company may not be able to pay the high salaries and perks that well­established companies might pay their employees.
B) The company may not be regulated by the government and the federal agencies.
C) The company may impose heavy taxes on employees' salaries.
D) The company may expose the employees to unlimited liability for any debts incurred on the owners of the company.

Quizplus · Accepted Answer

Being a relatively new and small business, the company may not have the resources to pay high salaries and perks that larger and more established companies can offer, which can make it difficult to attract top talent. Choices B, C, and D are not relevant factors in the company's ability to attract new employees.

Thomas Started an Engineering Company as a Sole Proprietorship Two