The best form of business entity to attract new capital is the sole proprietorship because investors only need to deal with one owner.

Question

Quizplus · Accepted Answer

The statement is false. The best form of business entity to attract new capital is not a sole proprietorship because it only has one owner, which may limit its ability to raise capital. Other forms of business entities such as partnerships, limited liability companies (LLCs), and corporations may be more attractive to investors because they offer different options for raising capital and sharing ownership.

The Best Form of Business Entity to Attract New Capital