Which of the following is a feature of sole proprietorship?
Answer Details
One feature of sole proprietorship is limited capital. This means that the business is owned and run by a single individual who contributes all the capital necessary to start and operate the business. As such, the amount of capital available to the business is limited to the resources of the owner. Unlike corporations, sole proprietorships are not able to issue shares or seek investments from external sources to raise capital. This also means that the owner assumes full responsibility for any debts or obligations incurred by the business, as there is no separate legal entity for the business.