Asked by Kelley Mcbride on May 14, 2024

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Chase, the owner of Data Master, a sole proprietorship, wants to obtain additional business capital. This opportunity is most likely limited to

A) borrowing funds.
B) bringing in partners.
C) issuing stock.
D) selling the business.

Additional Business Capital

Extra funds that are invested in a business to fuel its growth, cover operational costs, or expand its operations.

Borrowing Funds

The act of obtaining money from another party, typically a financial institution, under the agreement to repay it, often with interest, at a later date.

Bringing in Partners

The process of adding one or more individuals as business partners, typically to share ownership, responsibilities, and benefits of operating a business.

  • Understand the legal necessities and repercussions of managing a sole proprietorship.
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ET
Eeyore TiggerMay 18, 2024
Final Answer :
A
Explanation :
As a sole proprietorship, Chase's options for raising capital are limited compared to corporations. He cannot issue stock because that's a mechanism available to corporations. Bringing in partners would change the business structure and is not about obtaining capital directly. Selling the business would end his ownership, not help in raising capital for growth or operations. Therefore, borrowing funds remains the most viable option for obtaining additional business capital.