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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Definitions:

iPhone

The iPhone is a line of smartphones designed and marketed by Apple Inc., featuring a multi-touch screen, internet connectivity, and a wide array of applications, revolutionizing personal communication and media consumption.

Innovation

The introduction of new ideas, methods, or products, which can drive economic growth and enhance efficiency or quality.

Invention

The creation of a new product or process through the use of unique ideas or the innovative recombination of existing ideas.

Start-up

A new business venture in its early stages, typically characterized by high uncertainty and potential for growth.