Home › BBA › Business Studies › Forms of Business Organisation › A major limitation of sole proprietorship is tha…
A major limitation of sole proprietorship is that resources are limited to personal savings and:
AGovernment grants
BPublic share issues
CForeign investments
DBorrowings from others
Answer & Solution
Correct answer: D. Borrowings from others
1. Banks hesitate to give long-term loans.
2. So the firm rarely grows large.
3. Resources come from savings and borrowings.
_Source: NCERT Class 11 Business Studies, Chapter 2, Forms of Business Organisation._
Related questions
Two firms wanting to pursue one project together without merging would set up a:Which form protects an owner's personal assets from the firm's debts?The owner of a small shop wanting complete personal control would choose a:A takeover financed by very large amounts of borrowed money is a:A media firm buys an unrelated food business to spread its risk. That is a:A carmaker buys the firm that supplies its tyres. That is a:Two supermarket chains at the same stage of the same industry combine. That is a:The purchase of a target company by another corporation or an investor group is an: