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Business Studies

Retained Earnings

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What do you mean by unlimited liablitity in case of sole proprietors ?

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This implies that the owner is personally responsible for payment of debts in case the assets of business falls short to meet all the debts.

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Q. Is liability of sole proprietor limited or not?

Q. Fill in the blanks:
(a) Sole proprietorship is the _______ from of business enterprises, (latest / oldest)
(b) Sole proprietorship is most suitable form for _______ business, (small / large)
(c) Liability of a sole proprietor is ________ (limited / unlimited)
(d) Sole proprietorship _______ a separate legal entity, (has / does not have)
(e) It is ______ to set up a sole proprietorship firm,(easy / difficult)

Q. Liabilities and provisions made by sole proprietor are transferred to ________.

What do you mean by Contingent Liability?

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