JAMB Economics 2019 Objective — Question 27
Question 27 of 40 from the Joint Admissions and Matriculation Board (JAMB) Economics 2019 Objective paper, with the correct answer and a full explanation.
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One of the major problems facing sole proprietorship businesses in raising finance is that they
- A. cannot own property
- B. have unlimited product ranges
- C. must pay corporate tax
- D. are limited in the amount of capital they can raise, and find it difficult to meet bank loan requirementsCorrect
Explanation
Sole proprietors, in most cases, are limited in the amount they can raise as capital, and find it difficult to borrow due to the basic requirements for obtaining a bank loan.
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