Question

A small-scale sole proprietorship bakery has gained local popularity for its freshly baked goods. However, the owner is struggling to meet growing customer demands due to limited capital and lack of professional staff. To expand operations, the owner plans to seek a bank loan and hire experienced bakers.

1. Identity one major limitation of sole proprietorship highlighted in the case.
2. Suggest one auxiliary to trade that can help the owner secure funds for expansion.

Answer 1

1. One major limitation of a sole proprietorship highlighted in the case is limited capital. The owner cannot meet the growing customer demands due to insufficient funds and resources.
2. One auxiliary to trade that can help the owner secure funds for expansion is banking services, especially loan facilities offered by banks. Accessing a bank loan will provide the necessary capital to hire experienced professional staff and expand business operations.