Read each question and choose the best answer.

Question

How does a lack of financial resources for fringe benefits affect a sole proprietor's ability to run a business?
A. It makes it difficult for the owner to make a profit.
B. It makes it difficult for the owner to promote the business.
C. It makes it difficult for the owner to pay competitive wages.
D. It makes it difficult for the owner attract good employees.

Answer 1

The best answer is: D. It makes it difficult for the owner to attract good employees.

A lack of financial resources for fringe benefits can hinder a sole proprietor's ability to attract and retain quality employees, as these benefits often play a significant role in job attractiveness.