Question

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

• A. No license is required for any sole proprietorship.
• B. License is required for those businesses which requires it.
• C. License is required for all type of businesses under Sole Proprietorship.
• D. None of the above

Answer 1

The correct option is B License is required for those businesses which requires it.

Obtaining a license to operate business is mandatory for a sole proprietorship. License is required for those business which requires it will be the correct option. In sole proprietorship type of business the single individual takes all initiatives and run the business. 'Sole' means singe and 'proprietorship' means ownership.
The business organization in which the single owner owns, manages and controls all the activities of the business is known as sole proprietorship form of business organization.