Why Do Most Sole Proprietorships Remain Relatively Small

Multiple Choice

Why do most sole proprietorships remain relatively small?

A) because their shareholders would rather receive dividends than have earnings reinvested to finance growth
B) because the owners often disagree about the need to take on additional risk associated with growth
C) because they have limited ability to raise funds needed to finance growth
D) because government regulations limit their ability to expand into new areas of business