Which type of business organization can generally raise the LEAST money for business growth?

a. Sole proprietorship

b. Partnership

c. Corporation

It would generally be a sole proprietorship in that multiple people tend to have more capital than individuals. Moreover, groups willing to lend tend to offer more at cheaper rates if they can collateralize against more individuals. Corporations can issue stock or debt to increase capital.

Answer: a

One Response

1. bizsmithy Says:
   March 7th, 2010 at 8:09 pm

   It would generally be a sole proprietorship in that multiple people tend to have more capital than individuals. Moreover, groups willing to lend tend to offer more at cheaper rates if they can collateralize against more individuals. Corporations can issue stock or debt to increase capital.

   Answer: a
   References :

Leave a Comment