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Because creditors can reach personal assets, a sole proprietor is often less inclined to take risks in:
AInnovation or growth
BDaily petty spends
CHiring one helper
DBuying stationery
Answer & Solution
Correct answer: A. Innovation or growth
1. Unlimited liability is the reason.
2. A poor decision can hit personal wealth.
3. So innovation and expansion are avoided.
_Source: NCERT Class 11 Business Studies, Chapter 2, Forms of Business Organisation._
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