‘Limited capital hinders growth’. Explain the statement with refer

1.	‘Limited capital hinders growth’. Explain the statement with reference to sole proprietorship.
Answer» Limited capacity to work: In proprietorship the owner does everything. He formulates policies, he manages funds, he sells and he markets. It is a known fact that an individual has got only 24 hours per day to work and a limited set of skills and preferences towards works. Even if the proprietor is highly efficient he will have limited time and knowledge. The sole proprietor may lose out the benefit of skills possessed by other persons, opinions and suggestions, etc. and so the growth of business may be limited.

‘Limited capital hinders growth’. Explain the statement with reference to sole proprietorship.

Answer»

Limited capacity to work:

In proprietorship the owner does everything. He formulates policies, he manages funds, he sells and he markets.
It is a known fact that an individual has got only 24 hours per day to work and a limited set of skills and preferences towards works. Even if the proprietor is highly efficient he will have limited time and knowledge.
The sole proprietor may lose out the benefit of skills possessed by other persons, opinions and suggestions, etc. and so the growth of business may be limited.