Tag: meaning, features and merits of sole proprietorship

Questions Related to meaning, features and merits of sole proprietorship

Person doing business solely is known as ________.

elements of business sole trade meaning, features and merits of sole proprietorship sole proprietorship - meaning & features formation, characteristics, merits & demerits and objectives of sole proprietorship

  1. single person

  2. sole proprietor

  3. company

  4. partner

Show answer
Correct Option: B

Which of following is advantages (A) and which is disadvantage (D) of sole proprietorship form of business?
(i) Maintenance of business secrets
(ii) Limited capital
(iii) Quick decision and prompt action
(iv) Lack of continuity
Select the correct answer from the options given below.

elements of business sole trade meaning, features and merits of sole proprietorship sole proprietorship - meaning & features formation, characteristics, merits & demerits and objectives of sole proprietorship

  1. i - A

    ii - A

    iii - A

    iv - A

  2. i - D

    ii - D

    iii - D

    iv - D

  3. i - A

    ii - D

    iii - A

    iv - D

  4. i - D

    ii - A

    iii - D

    iv - A

Show answer
Correct Option: C
Explanation:

Sole proprietorship, also known as the sole trader, individual entrepreneurship or proprietorship, is a type of enterprise that is owned and run by one person.'

Advantages: ease of start-up and closure, pride of ownership, retention of all profits, Secrecy, Quick decision making.
Disadvantages: unlimited liability, lack of continuity, Limited capital, limited management skills, and difficulty in hiring employees.

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.
IV. In a HUF business all co-parceners have equal share in the profits of the business. 
Select the correct answer from the options given below:

elements of business sole trade meaning, features and merits of sole proprietorship sole proprietorship - meaning & features formation, characteristics, merits & demerits and objectives of sole proprietorship

  1. I - False

    II - False

    III - True

    IV - True

  2. I - False

    II - True

    III - True

    IV - False

  3. I - True

    II - False

    III - True

    IV - True

  4. I - False

    II - True

    III - False

    IV - True

Show answer
Correct Option: C

The sole proprietorship form of business discourages self employment.

elements of business sole trade meaning, features and merits of sole proprietorship sole proprietorship - meaning & features formation, characteristics, merits & demerits and objectives of sole proprietorship

  1. True

  2. False

  3. Partly true

  4. Partly false

Show answer
Correct Option: B

Thus the partners of __________ firm get the benefit of lower assessment.

elements of business sole trade meaning, features and merits of sole proprietorship sole proprietorship - meaning & features formation, characteristics, merits & demerits and objectives of sole proprietorship

  1. registered partnership

  2. unregistered partnership

  3. HUF

  4. sole proprietorship

Show answer
Correct Option: A

Sole proprietorship form of business organisation is suitable ________.

elements of business sole trade meaning, features and merits of sole proprietorship sole proprietorship - meaning & features formation, characteristics, merits & demerits and objectives of sole proprietorship

  1. where the market for the product is small

  2. where customers are given personal attentions

  3. where the nature of business is simple

  4. all of the above

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Correct Option: D

Statutory body is a body that is created under an Act, enacted by ________.

elements of business sole trade meaning, features and merits of sole proprietorship sole proprietorship - meaning & features formation, characteristics, merits & demerits and objectives of sole proprietorship

  1. association of people

  2. association of ministers

  3. both (a) and (b)

  4. judiciary

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Correct Option: B

Which property will be the property of a Firm?

elements of business sole trade meaning, features and merits of sole proprietorship sole proprietorship - meaning & features formation, characteristics, merits & demerits and objectives of sole proprietorship

  1. The movable and immovable property of the firm

  2. Property brought in by a partner and is vested in the firm.

  3. Property brought in by a partner and is being used in partnership firm.

  4. None of the above

Show answer
Correct Option: B

Mr. Varun wanted to start a bakery shop with limited money. What kind of business organization you would suggest him_______________.

elements of business sole trade meaning, features and merits of sole proprietorship sole proprietorship - meaning & features formation, characteristics, merits & demerits and objectives of sole proprietorship

  1. sole proprietoryship

  2. HUF

  3. Partnerhship

  4. corporation

Show answer
Correct Option: A

A florist opened a shop in the year $2000$ but due to certain looses he did wind it up in a single day after $9$ years of operations i.e. in $2009$. What kind of organization it is________________.

elements of business sole trade meaning, features and merits of sole proprietorship sole proprietorship - meaning & features formation, characteristics, merits & demerits and objectives of sole proprietorship

  1. sole proprietorship

  2. company

  3. limited liability partnership

  4. none of the above

Show answer
Correct Option: A