Question

Sole proprietorship form of business organisation is suitable ________.

• A. where the market for the product is small
• B. where customers are given personal attentions
• C. where the nature of business is simple
• D. all of the above

Answer 1

The correct option is D all of the above

The sole proprietorship form is most suitable only in the following cases:

1. The nature of business is simple

2. Manual skill is required.

3. The market for the product is small and local.

4. The capital requirement is small and the risk involved is not heavy.

Thus the correct answer is D.