5 Questions
What is the nature of liability of a sole proprietor?
Unlimited liability
In a sole proprietorship, who enjoys all the profits of the business?
Sole proprietor
What is one characteristic of a sole proprietorship in terms of its legal entity?
It is not recognized by law as a separate entity from the owner
What is one significant advantage of a sole proprietorship in terms of decision-making?
Quick decision-making
Which of the following is true regarding the formation of a sole proprietorship?
Can be closed without any formalities
Test your knowledge about the concept of Karta in Hindu Undivided Families (HUF), including their role, responsibilities, and liabilities. Learn about the control and management of HUF businesses and the involvement of minor members.
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