In order to increase the capital owned, a sole trader may
-
A.
seek for bank loan -
B.
issue debentures -
C.
acquire extra shop fittings on credit -
D.
draw less of his profit for personal use
Correct Answer: Option D
Explanation
A sole trader can raise capital for the business by ploughing back profit. That is, re-investing the profits realised from the business instead of using it for personal needs