Question

One of the hardships of a sole proprietorship is that _________________.

• A. Capital is limited to owner's savings and bank loans
• B. It has to complete too many registration fomalities
• C. As they are government owned there is no profit motive
• D. More tax is charged on them

Answer 1

The correct option is A Capital is limited to owner's savings and bank loans

Option A is the correct answer.

One of the hardships of sole proprietorship is that the capital that it can contribute is very limited .Public funds cannot be raised in sole proprietorship.