This topic contains a solution. Click here to go to the answer

Author Question: What kind of problem do creditors lending funds to a sole proprietorship form of business ... (Read 60 times)

wenmo

  • Hero Member
  • *****
  • Posts: 540
What kind of problem do creditors lending funds to a sole proprietorship form of business face?

Question 2

Subjective evaluations
 A) lend themselves to easy measurement.
  B) are objective in nature.
  C) are directly measured by productivity.
  D) are based on opinion.



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

whitcassie

  • Sr. Member
  • ****
  • Posts: 298
Answer to Question 1

Uncertainty and lack of control are two major problems creditors experience. Each creditor faces a liquidity problem. Without special arrangements it will not be able to call in its loan or sell it to someone else if it wants to use the funds elsewhere or thinks the proprietor is misspending them. Besides a sole proprietorship business is inseparable from the proprietor. Death or retirement of a proprietor can cause its management to pass to people who are less competent or who have priorities or conflicts that lower its value.

Answer to Question 2

D




wenmo

  • Member
  • Posts: 540
Reply 2 on: Jun 30, 2018
Thanks for the timely response, appreciate it


ryansturges

  • Member
  • Posts: 338
Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

 

Did you know?

The lipid bilayer is made of phospholipids. They are arranged in a double layer because one of their ends is attracted to water while the other is repelled by water.

Did you know?

Cutaneous mucormycosis is a rare fungal infection that has been fatal in at least 29% of cases, and in as many as 83% of cases, depending on the patient's health prior to infection. It has occurred often after natural disasters such as tornados, and early treatment is essential.

Did you know?

In the United States, congenital cytomegalovirus causes one child to become disabled almost every hour. CMV is the leading preventable viral cause of development disability in newborns. These disabilities include hearing or vision loss, and cerebral palsy.

Did you know?

Complications of influenza include: bacterial pneumonia, ear and sinus infections, dehydration, and worsening of chronic conditions such as asthma, congestive heart failure, or diabetes.

Did you know?

Adolescents often feel clumsy during puberty because during this time of development, their hands and feet grow faster than their arms and legs do. The body is therefore out of proportion. One out of five adolescents actually experiences growing pains during this period.

For a complete list of videos, visit our video library