Thomas Started an Engineering Company as a Sole Proprietorship Two

Multiple Choice

Thomas started an engineering company as a sole proprietorship two years ago with only three employees. Thomas is finding it hard to acquire new employees. Which of the following is most likely the reason for the company's inability to attract new employees?

A) The company may not be able to pay the high salaries and perks that well­established companies might pay their employees.
B) The company may not be regulated by the government and the federal agencies.
C) The company may impose heavy taxes on employees' salaries.
D) The company may expose the employees to unlimited liability for any debts incurred on the owners of the company.