Merits and Limitations of Sole Proprietorship

Q.

'One man control is the best in the world if that man is big enough to manage everything'. Explain the statement.

Q.

What do you understand by a sole proprietorship firm? Explain its merits and limitation?

Q.

Which of the following is the main advantage of a sole proprietorship?

1. Being your own boss

2. Pride of ownership

3. Ease of starting a business

4. All of the above

Q.

Explain any three limitations of sole proprietorship.

Q.

Despite limitations of size and resources, many people continue to prefer sole proprietorship over other forms of organisation. Explain.

Q.

Why is it said that sole proprietorship has a limited life of business ?

Q.

Why is it important to choose an appropriate form of organisation? Discuss the factors that determine the choice of the form of organisation.

Q.

"Despite limitations of size and resources, many people continue to prefer sole proprietorship over other forms of organisation? Explain

Q.

Why is it important to choose an appropriate form of organisation? Discuss the factors that determine the choice of form of organisation.

Q.

Identify the merits or limitation of sole proprietorship hidden in the quoted line.

(a) "The sole proprietor can easily change the size of the business."

(b) "All the profits of the business belong to the sole proprietor."

(c) ''Inability of the owner to manage all the activities of business himself.

Q.

What do you understand by a sole proprietorship form? Explain its merits and limitation.

Q. is the enterprise involving single ownership.

1. Company
2. Sole Proprietorship
3. Partnership

Q.

Which form of business organisation is preferred on the basis of cost and case of formation?

Q.

Small scale business in India faces the hurdles in every step. Can you elaborate some of them?

Q. Long answer Type questions

Give comparative analysis of business, profession and employment.

Q.

When is it appropriate to select sole proprietorship form of organisation ?

Q.

Despite limitations of size and resources, many people continue to prefer sole proprietorship over other forms of organisation. Why ?

Q.

What is the disadvantage of a sole proprietorship?

1. Limited resources

2. Quick decision making

3. Sense of accomplishment

4. Direct incentive

Q. What do you understand by Sole Proprietorship? Outline its features.

Q. Statement A: Easy to form is advantage of sole proprietorship form of business.
Statement B : Easy to wind-up is advantage of sole proprietorship form of business.

1. Statement A is true and Statement B is false
2. Statement A is false and Statement B is true
3. Both Statement A and B are true
4. Both Statement A and B are false

Q. ______ is a popular form of business organisation and is the most suitable form for small businesses.

1. Partnership
2. Sole proprietorship
3. Joint stock Company
4. Statutory Corporation

Q. State the features of sole trading concern.

Q. Which of the following are kinds of companies?

1. Private companies
2. Producer companies
3. Both (a) and (b)
4. None of the above

Q. Select out the feature which is NOT found in a private limited company?

1. Shares can be bought and sold on the Stock Exchange
2. Raising capital for the business is easier
3. Subscribers of the business have limited liability
4. The business continues after the death of shareholders

Q. Arrange the following steps in formation of Sole Proprietorship, in correct order.

1. Obtaining required License for business
2. Discussion about business
3. Starting the business
4. Arrangement of Financial resources

1. 1, 4, 2, 3
2. 1, 3, 2, 4
3. 2, 1, 4, 3
4. 1, 2, 3, 4

Q.

Justify that in Sole Proprietorship form of business, the Proptietor and the Business are not considered to be separate entity.

Q. Businesses providing direct services like tailors, restaurants and professional services like doctors, lawyers are generally organized as _____________.

1. Proprietary concerns
2. Trust
3. Co-operative society
4. Any of the above

Q. One man control is the best in the world if the man is capable enough to manage everything. This statement states about which form of business?

1. Partnership
2. Company
3. Sole Proprietorship
4. Trust

Q. Obtaining a license to operate business is mandatory for a sole proprietorship. Choose the appropriate answer option.

1. License is required for all type of businesses under Sole Proprietorship.
2. License is required for those businesses which requires it.
3. No license is required for any sole proprietorship.
4. None of the above

Q. Give three merits of sole proprietorship firm.