What is the simple meaning of sole proprietorship?
Answer and explanation
Correct answer: A business owned and run by one person
Sole proprietorship is a business owned and controlled by one individual. The proprietor usually makes decisions, contributes or arranges resources, receives the business results, and bears the business risk subject to the applicable legal framework. Therefore option A is correct. City ownership, customer ownership, or automatic government operation does not define this form.
Frequently asked questions
What is the correct answer to this question?
A business owned and run by one person
Why is this the correct answer?
Sole proprietorship is a business owned and controlled by one individual. The proprietor usually makes decisions, contributes or arranges resources, receives the business results, and bears the business risk subject to the applicable legal framework. Therefore option A is correct. City ownership, customer ownership, or automatic government operation does not define this form.
Which subject and chapter does this question cover?
This is a Class 11 Business Studies question. Chapter: Forms of Business Organisation. Topic: Sole Proprietorship.
