Which of the following is not a source of fund for sole-proprietorship?
-
A.
Personal savings -
B.
Borrowing from friends and relatives -
C.
Borrowing from financial institution -
D.
Government bonds
Correct Answer: Option D
Explanation
Sole proprietorships are not companies – you cannot sell shares to investors to raise capital. Most times, you’ll be relying on your own resources, such as savings and retained profits, borrowing and grants from friends, as well as bank loans and credit cards to raise the money you need.