Question

The most suitable definition of a sole trader form of business organization is _______.

• A. the business who manufacture only one product
• B. the business is owned by one person
• C. the firm has a single buyer
• D. there is a single seller is the industry

Answer 1

Answer: (B)

the business is owned by one person

A sole trading concern is a business which is owned and managed by a single person. He is the only risk taker in the business and the profit is enjoyed by himself only. Hence, the most suitable definition of a sole trader form of business organization is the business is owned by one person.