JAMB Commerce 2013 Objective — Question 19

Question 19 of 50 from the Joint Admissions and Matriculation Board (JAMB) Commerce 2013 Objective paper, with the correct answer and a full explanation.

In order to increase the capital owned, a sole trader may

A. issue debentures
B. acquire extra shop fittings on credit
C. draw less of his profit for personal useCorrect
D. seek for bank loan

Explanation

If the sole trader draws less of his profit, the remaining amount will be ploughed back into the business, increasing the sole trader's capital.

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