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When It Comes to Borrowing Funds, a Sole Proprietor

Question 4

Multiple Choice

When it comes to borrowing funds, a sole proprietor


A) usually pays lower interest rates on funds borrowed from banks than do large corporations.
B) has access to more sources of funds than do large corporations.
C) oftentimes must pledge a car, a house, other real estate, or other personal assets to guarantee a loan.
D) can sell stocks and bonds to the public to raise money.
E) does not need to rely on his or her credit standing in order to obtain funds.

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