What does sole proprietorship mean?
Answer and explanation
Correct answer: Business owned by one person
A sole proprietorship is a form of business organisation owned and usually controlled by one individual. The proprietor takes decisions, receives the business income after expenses, and bears the business risks and liabilities as provided by law. It is not a government department, a customer group, or a meeting of people. Therefore, option A gives the correct meaning.
Frequently asked questions
What is the correct answer to this question?
Business owned by one person
Why is this the correct answer?
A sole proprietorship is a form of business organisation owned and usually controlled by one individual. The proprietor takes decisions, receives the business income after expenses, and bears the business risks and liabilities as provided by law. It is not a government department, a customer group, or a meeting of people. Therefore, option A gives the correct meaning.
Which subject and chapter does this question cover?
This is a Class 11 Business Studies question. Chapter: Forms of Business Organisation. Topic: Sole Proprietorship.
