What could make financing difficult in a sole proprietorship?

In a sole proprietorship, the primary reason financing can be difficult is due to the aspect of unlimited personal liability. This means that the owner is personally responsible for all debts and obligations of the business. If the business incurs debt or faces legal issues, creditors can go after the owner's personal assets, which may deter potential lenders or investors from providing financing. This heightened risk is an important consideration for bankers and investors, as they often prefer to lend to entities where their liability is limited to the business's assets.

The other options, while relevant in a broader business context, do not directly relate to the challenges of financing in a sole proprietorship. The presence of multiple partners would pertain more to partnerships than sole proprietorships, an active market presence might suggest a viable business but does not address liability concerns, and global sales opportunities may indicate growth potential, but they do not inherently resolve the financing challenges posed by personal liability.