A key reason most sole proprietorships remain relatively small is that: a. they have limited ability to raise funds needed to finance growth.
b. the owners often disagree about the need to take on additional risk associated with growth.
c. government regulations limit their ability to expand into new areas of business.
d. their stockholders would rather receive dividends than have earnings reinvested to finance growth.


Answer 1


A. They have limited ability to raise funds needed to finance Growth


What is a Sole Proprietorship

A sole proprietorship represents a business that owned and run mostly by an individual who has the responsibility of paying income tax on any profit generated by the business. Sole Proprietorship is also a very popular form of business around the world.

Characteristics of a Sole Proprietorship

  • It is usually owned by an individual who is responsible for its profits as well as its risks
  • Sole Proprietorships are easy to set-up due to its simple management and ownership structure
  • Due to the singular ownership decision making is limited to the capacity of the owner
  • Since it is unincorporated, a sole proprietorship has limited access to capital for expansion such as gearing and the stock market option of getting shareholders. As such, the capital of a sole proprietorship is limited to personal savings, borrowing based on limited collateral, grants and gifts from friends and family.

Related Questions


At December 31, 20X1, Eagle Corp. reported $1,750,000 of appropriated retained earnings for the construction of a new office building, which was completed in 20X2 at a total cost of $1,500,000. In 20X2, Eagle appropriated $1,200,000 of retained earnings for the construction of a new plant. Also, $2,000,000 of cash was restricted for the retirement of bonds due in 20X3. In its 20X2 balance sheet, Eagle should report what amount of appropriated retained earnings?



$ 1,200,000 is appropriated retained earning (for the construction of new plant)


The $2,000,000 of restricted does not affect the retained earnings because cash restricted for retirement of bonds (as an assets account fund called sinking fund) and the  $1,500,000 and $1,750,000 do not affect the retained earnings because when new building is completed $ 1,750,000 was restored to inappropriate retained earning.

hence Eagle should report $1.200,000 of appropriated retained earnings


Mary Hernandez had a policy with a $250 deductible which paid 80% of her covered charges less deductible. She had medical expenses of $18,240.00. Calculate: a. the insurance company's payment $ b. the 20% copayment $ c. Mary's total cost $



a. $14,392

b. $3598

c. $3848


a. Given,

Medical expenses = $18,240.00,

Deduction = $250

Total payment = 18240 - 250 = $ 17990

Payment percentage = 80%,

Thus, the insurance company's payment = 80% of (total payment)

= $ 14392

b. co payment  percentage = 20 % of total payment

= $ 3598

c. Mary's total cost  = deduction +  co payment  

= 250 + 3598

= $3848


Enjoy It Industries manufactures​ custom-designed playground equipment for schools and city parks. Enjoy It expected to incur $ 750 comma 600 of manufacturing overhead​ cost, 41 comma 700 of direct labor​ hours, and $ 1 comma 000 comma 800 of direct labor cost during the year​ (the cost of direct labor is ​$24 per​ hour). The company allocates manufacturing overhead on the basis of direct labor hours. During September​, Enjoy It completed Job 302. The job used 165 direct labor hours and required $ 13 comma 900 of direct materials. The City of Southtown has contracted to purchase the playground equipment at a price of 20 % over manufacturing cost.




The computation of the total manufacturing cost is shown below:

= Direct material used + direct labor cost + manufacturing overhead cost


Direct material used = $13,900

Direct labor cost = 165 direct labor hours × $24 =  $3,960

And, the manufacturing overhead cost = 165 direct labor hours × $18 = $2,970

So, the  total manufacturing cost is

= $13,900 + $3,960 + $2,970

= $20,830

The $18 is come from predetermined overhead rate that is computed below:

= Expected manufacturing overhead cost ÷ expected direct labor hours

= $750,600 ÷ 41,700

= $18

And, the amount paid is

= Total manufacturing overhead × 100 + 20%

= $20,830 × 120%

= $24,996


Three different companies each purchased trucks on January 1, 2018, for $70,000. Each truck was expected to last four years or 200,000 miles. Salvage value was estimated to be $5,000. All three trucks were driven 66,000 miles in 2018, 41,000 miles in 2019, 39,000 miles in 2020, and 61,000 miles in 2021. Each of the three companies earned $59,000 of cash revenue during each of the four years. Company A uses straight-line depreciation, company B uses double-declining-balance depreciation, and company C uses units-of-production depreciation. Required a-1.
Calculate the net income for 2018? (Round "Per Unit Cost" to 3 decimal places.) Net Income Company Company Company
a-2. Which company will report the highest amount of net income for 2018?
Company A
Company B
Company C
All of the choices



Company A  42,750 (highest)

Company B 35,000

Company C 21,450


straigh-line dpereication (Company A)

(acquisition - salvage) / useful life

(70,000 - 5,000) / 4 = 16,250

double declining (comopany B)

2/ useful life x carrying value

2/4 x 70,000 = 35,000

units of production:

(acquisition - salvage) / units of production x usage for the period

(70,000 - 5,000)  / 200,000 x 66,000 = 21,450

From the revenues we subtract the depreciation expense and get net income


A note organizer is not important if you know how to take good notes. please select the best answer from the choices provided


That statement is false.
Note organizers is basically a tool that you need to arrange the final result of your notes.
This means that even after you manage to create a good quality notes, you need a place to store those notes properly so you could easily access it if you need the notes in the future.




props to the other person its correct!


A metallurgical engineer decides to set aside money for his newborn daughter's college education. He estimates that her needs will be $20,000 on her 17th, 18th, 19th, and 20th birthdays. If he plans to make uniform deposits starting 3 years from now and continue through year 16, what should be the size of each deposit, if the account earns interest at a rate of 8% per year?



what should be the size of each deposit, if the account earns interest at a rate of 8% per year?



% N Monthly          % VF

1,08 0 2477,81117 1,00 2.477,81

1,08 1 2477,81117 1,08 2.676,04

1,08 2 2477,81117 1,17 2.890,12

1,08 3 2477,81117 1,26 3.121,33

1,08 4 2477,81117 1,36 3.371,03

1,08 5 2477,81117 1,47 3.640,72

1,08 6 2477,81117 1,59 3.931,97

1,08 7 2477,81117 1,71 4.246,53

1,08 8 2477,81117 1,85 4.586,26

1,08 9 2477,81117 2,0 4.953,16

1,08 10 2477,81117 2,16 5.349,41

1,08 11 2477,81117 2,33 5.777,36

1,08 12 2477,81117 2,52 6.239,55

1,08 13 2477,81117 2,72 6.738,71






Business communicators normally use active voice more heavily than passive voice because active voice: a. conveys ideas more vividly. b. subordinates an unpleasant thought. c. conceals the doer of an action.



a. conveys ideas more vividly.


Option B is wrong because using an active voice cannot create an unpleasant thought. The active voice is simple and easy to use. Therefore, option B is incorrect.

Option C is incorrect either because active voice cannot hide anything. With the help of active voice, business communication becomes smooth.

As active voice provides a strong feeling in business, managers usually prefer active voice to convey the ideas more brightly. Therefore, Option A is correct.


Approximately __________ of trades involving shares issued by firms listed on the New York Stock Exchange actually take place on the New York Stock Exchange. A.50%


Answer: B. 75%

Explanation: The NYSE accounts for a large majority of equity trades in the North America and worldwide. But not all trades actually do go on on the NYSE. I think this is because in 2007 they acquired Euronext which combined the NYSE with the five major European exchanges, inclusive of the Paris Bourse, Amsterdam, the London International Financial Futures etc. This merger bumped up their trading capacity to up to 10 billion shares per day. While 75% of trades do go on on the NYSE, the rest are handled by the other aspect of the merger deal, Euronext.


Electricity use in a small town is high as people get ready to leave for work and after they arrive home at the end of the day. During the middle of the day, household use of this utility is very low. Increasing capacity seems like a bad idea because resources would sit idle during the time people are at work. The town council asks for your advice about the best way to solve the problem of quantity demanded during peak use hours. What advice would you give?



The correct answer is letter "C": Increase the price of electricity during peak times.


The best form to regulate the use of electricity during peak hours would imply increasing the price of the power service. This will cause people to use the utility moderately to avoid increasing their expenses. By demand law, as long as the price increases, the quantity demanded tends to fall.

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