Question

Sole proprietorship form is not suitable _______________.

• A. Where capital requirement is large and risk involvement is heavy.
• B. Where manual skill is required.
• C. Where the market for the product is small and local.
• D. All of above.

Answer 1

The correct option is A Where capital requirement is large and risk involvement is heavy.

The sole proprietorship form is not suitable where the capital requirement is large and risk involvement is heavy because the higher the capital higher will be the risk and it is only suitable for the small business with less capital.

Thus the correct answer is D.