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A Key Reason Most Sole Proprietorships Remain Relatively Small Is

Question 5

Multiple Choice

A key reason most sole proprietorships remain relatively small is that:


A) they have limited ability to raise the funds necessary to finance growth.
B) they involve extensive paperwork and incur heavy costs.
C) heavy taxes are levied directly on their earnings as a business.
D) their stockholders would rather receive dividends than have earnings reinvested to finance growth.

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