Answered

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It is possible for a sole proprietorship business to raise money from the capital market (stock market).

Sagot :

Samawati

Answer:

No

Explanation:

Sole proprietorships are businesses owned by one person. The owner raises the capital by themselves, either through savings, donations, or borrowing. The law does not distinguish the owner and the business. Business assets and liabilities are deemed to belong to the owner.

A sole proprietorship cannot raise funds from the stock exchange. Raising funds from the stock exchange involves issuing shares, bonds, or other marketable securities authorized by the stock exchange authority. A sole proprietorship cannot meet the requirement to trade in the stock exchange. Issuing of stock will imply investors will become owners of the business. This is not possible as a sole proprietorship can only have one owner.

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