Which of the Following Is Typically the Major Factor in Limiting

question 16

Multiple Choice

Which of the following is typically the major factor in limiting the growth of a sole proprietorship?

• A)The organization of such firms tends to become extremely complicated over time.
• B)It is extremely difficult to transfer control of such a firm to a new owner if the present owner dies or wishes to sell the firm.
• C)The amount of money that can be raised by the firm is limited by the fact that the single owner must make good on all debts.
• D)Investors have a great deal of control over the day-to-day running of the firm,leading to confusion when conflicts in direction arise.
• E)The owner's personal reputation is the basis for the business.

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