Homework Answers
Among four statements second statement is incorrect.
ie. Most sole proprietors raise money by borrowing from banks.
We cant say that most sole proprietors raise money by borrowing from banks, because sole proprietors may use their own personal assets to run a sole proprietorship.
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Hope you understood.
SOLE PROPRIETORSHIP BECAUSE BANKS AND OTHER FINANCIAL INSTITUTIONS HESITATE TO GIVE LOANS DUE TO WEAK FINANCIAL POSITION IN BUSINESS
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