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Questions and Answers
Which of the following statements is true about sole proprietorship?
Which of the following statements is true about sole proprietorship?
- The proprietor is the sole owner of the firm and has full control over it. (correct)
- The business has a separate legal identity from the owner.
- The scale of operation is generally limited due to lack of managerial ability.
- The owner has limited control over the business.
What is the main characteristic of a sole proprietorship?
What is the main characteristic of a sole proprietorship?
- Separate legal identity
- Business continuity
- One-man control (correct)
- Multiple owners
What is the impact of death or incapacity on a sole proprietorship?
What is the impact of death or incapacity on a sole proprietorship?
- Limited impact
- Direct impact (correct)
- No impact
- Indirect impact
What is the size of operation of a sole proprietorship?
What is the size of operation of a sole proprietorship?
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A sole proprietorship has no legal ______ separate from that of its owner.
A sole proprietorship has no legal ______ separate from that of its owner.
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Since business and owner are one so death, insolvency, incapacity, ailment etc. will have direct effect on the ______.
Since business and owner are one so death, insolvency, incapacity, ailment etc. will have direct effect on the ______.
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The sole proprietorship firms operate on a very ______ scale.
The sole proprietorship firms operate on a very ______ scale.
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