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JAMB Economics 2009 Question 39

Question 39

Business Organisations

The major problem confronting a sole proprietor is

  1. A.high level of risk
  2. B.limited expertise
  3. C.limited source of capital
  4. D.high taxation
Show the answer and explanation

Answer: C (limited source of capital)

Explanation

A sole trader depends on personal savings and small loans, so shortage of capital limits the business.