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 – draw less of his profit for personal use

Explanation

A sole trader can raise capital for the business by ploughing back profit. That is, re-investing the profits realized from the business instead of using it for personal needs