Question

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.

• A. Statement A is true but Statement B is false
• B. Statement A is false but Statement B is true
• C. Both Statement A and B are true
• D. Both Statement A and B are false

Answer 1

Answer: (C)

Both Statement A and B are true

Both the statements are correct because easy to form is the advantage of sole proprietorship form of business and easy to wind up is also an advantage of sole proprietorship form of business, both are the key advantages of the sole proprietorship, any individual can easily set up the sole proprietorship because of the fewer rules and regulations applicability on the same.

Thus the correct answer is C.