Question

Which of the following statement is/are TRUE and which is/are FALSE?
I. Sole proprietorship business includes only shopkeepers.
II. In sole proprietorship business the proprietor has full control over each and every activity of the business.
III. The sole proprietor is always in a position to maintain good personal contact with the customers and employees.
Select the correct answer from the options given below:

• A. I - False
  II - False
  III - True
  
• B. I - False
  II - True
  III - True
  
• C. I - True
  II - False
  III - True
  
• D. I - False
  II - True
  III - False
  

Answer 1

Answer: (D)

I - False

II - True
III - False
1. False because this form of business not only includes in retail sector but also includes in areas of personalised services such as beauty parlours, hair saloons and small scale activities.
2. True as Sole proprietorship refers to a form of business organisation which is owned, managed and controlled by an individual who is the recipient of all profits and bearer of all risks.
3. False because sometimes it is diffucult for a single person to control each and activity of the business so sometimes it requires to have other persons to manage other activities.