WAEC Commerce 2000 Question 2

Question 2

Business Finance

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

  1. A.Trade Credit
  2. B.Overdrafts
  3. C.Debentures
  4. D.Leasing of equipment
Show the answer and explanation

Answer: C (Debentures)

Explanation

Debentures are loans raised by companies from the public; a sole trader cannot issue them.