Which of the Following Is Typically the Major Factor in Limiting

question 22

Multiple Choice

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

• A)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.
• B)Investors have a great deal of control over the day-to-day running of the firm, leading to confusion when conflicts in direction arise.
• C)The organisation of such firms tends to become extremely complicated over time.
• D)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.

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Definitions:

Situational

Relating to or dependent upon a particular set of circumstances or environment.

Cognitive

Relating to mental processes such as perception, memory, thought, and problem-solving, crucial for understanding, learning, and decision-making.

Social Referencing

Using another person’s reaction to a situation to form one’s own assessment of it.

Secure Attachment

A stable and healthy emotional bond between an infant and their caretaker, characterized by trust and a sense of safety.