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The major problem confronting a sole proprietor is

...

The major problem confronting a sole proprietor is

A.

High level of risk

B.

Limited expertise

C.

Limited source of capital

D.

High taxation

Correct answer is C

Availability of capital for expansion is one of the major issues faced by sole traders. These traders are left to either borrow capital from friends and family or from personal savings to fund their business, as financial institutions tend not to lend sole traders funds due to the unavailability of collateral materials and inability to repay loans.