Concept:A sole proprietor has unlimited personal responsibility for financing the business, which makes raising money a major challenge.
Explanation:A sole proprietorship is owned and run by one person.
The owner alone provides most of the capital needed to start and operate the business.
Additional money can only come from personal savings, family, or friends.
Banks and other lenders are often unwilling to give credit to a sole proprietor because the business has no separate legal identity.
This makes it difficult to obtain enough funds for expansion or daily operations.
Labour, raw materials, and machineries can be sourced more easily if the necessary funds are available.
Therefore, the major problem faced by a sole proprietor is sourcing for funds.
Answer:A. Funds