Question

Profits do not have to be shared. This statement refers to

(a) Partnership

(b) Joint Hindu family business

(c) Sole proprietorship

(d) Company

Answer 1

Profits do not have to be shared in a sole proprietorship form of business. This is because, in a sole proprietorship, the business is owned, managed and controlled by a single individual known as the sole proprietor. Thus, being the sole owner of the business, he or she becomes the single recipient of all the profits of the business.

Hence, the correct answer is option (c).