Features of Sole Proprietorship

Q.

In sole proprietorship, the owner takes all decisions and is in full control of the business.

1. True

2. False

Q.

What is the liability of a sole proprietorship?

1. Unlimited liability

2. Limited liability

3. Jointly Liable

4. None of the above

Q.

All profits of a sole proprietorship belong to the ______________.

1. owner

2. stockholders

3. the government

4. partners

Q.

Which is the form of organization where the initial cost of setting-up of the business is least?

1. Partnership

2. All of the above

3. Joint Stock Company

4. Sole Proprietorship

Q.

Mrs. Rita has her own beauty parlour at the Cross Street road. Which form of business organisation is most suitable for her?

1. Partnership

2. Sole Proprietorship

3. Joint Stock Company

4. Cooperative Society

Q. Fill in the blanks:
(a) Sole proprietorship is the _______ from of business enterprises, (latest / oldest)
(b) Sole proprietorship is most suitable form for _______ business, (small / large)
(c) Liability of a sole proprietor is ________ (limited / unlimited)
(d) Sole proprietorship _______ a separate legal entity, (has / does not have)
(e) It is ______ to set up a sole proprietorship firm, (easy / difficult)

Q. A organisation is easy to form.

1. company
2. partnership
3. sole proprietorship

Q.

Why is partnership regarded as a viable option for overcoming the disadvantages of financing and managing an expanding business under sole proprietorship?

Q.

Which of the following is the key feature of sole proprietorship?

1. Size

2. Market segment

3. Legal form

4. Ownership

Q.

Which of the following businesses represents a sole proprietorship? Find the Answer at BYJUS

1. Sisters who make custom wedding gowns from a shop in their home

2. A man who owns and operates a lawn mower repair business by himself

3. A consulting firm called AAA Engineering, Incorporated

4. A criminal law firm with multiple senior partners

Q. Long Answer Questions :
What do you understand by a sole proprietorship firm? Explain its merits and limitations.

Q. Sole Proprietorship business is suitable for _________.

1. Artistic work
2. Perishable goods that are sold in local markets
3. Personalized services
4. All of the above

Q. The business form (s) in which the owner (s) is (are) personally liable is (are) the _______________.

1. Partnership only
2. Proprietorship
3. Corporation only
4. Partnership and proprietorship

Q. The government company cannot enter into contract or acquire property in its own name.

1. True
2. False

Q. Is liability of sole proprietor limited or not?

Q. Name the form of business enterprise where there is separation of ownership and management.

Q. Business letters produce immediate effect because they are-

1. Interesting
2. Informal
3. Formal
4. Brief

Q. The franchisee pays to the franchiser a sum off money called _______ for using his business know-how and trade mark.

1. Trade balance
2. Royalty
3. Sales dues
4. Account balance

Q. Payment of _________ on a regular basis is to be made to the franchiser.

1. profits
2. royalty
3. fees
4. all of the above

Q. Which of the following is/ are disadvantage of a company form of organization?

1. The formation of a joint stock company is much more complicated than sole proprietorship or partnership
2. A joint stock company has greater tax burden
3. Separation of ownership from control
4. All of above

Q. Which of the following are merits of sole proprietorship?

1. Easy to form
2. Direct incentive
3. Flexibility
4. Personal touch
5. Secrecy
6. Limited resource
7. Large size
8. Multi control

Q. Which of the following are features of sole proprietorship?

1. Single ownership
2. Risk bearing
3. One man control
4. Small-size
5. Easy formation
6. Limited resource
7. Limited capital
8. Conflicts