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WAEC Commerce 1993 Question 20

Question 20

Business Finance

Which of the following is not a source of capital to a sole proprietor?

  1. A.Loan from friends
  2. B.Personal savings
  3. C.Ploughing back profit
  4. D.Borrowing from relations
  5. E.Borrowing through debentures
Show the answer and explanation

Answer: E (Borrowing through debentures)

Explanation

Only companies can issue debentures; a sole trader cannot.