JAMB Commerce 2015 Objective — Question 47

Question 47 of 50 from the Joint Admissions and Matriculation Board (JAMB) Commerce 2015 Objective paper, with the correct answer and a full explanation.

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

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

Explanation

If a sole trader draws less of the profit, most of the profit will be ploughed back into the business, resulting in an increase in his capital.

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