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प्रश्न
Write short notes on the following.
Features of a proprietorship
टिप्पणी लिखिए
उत्तर
Features of a proprietorship:
i. Easy formation and closure: This form of organisation requires minimum legal formalities while forming and closing down
the business.
ii. Unlimited liability: A sole proprietor has unlimited liability; this implies that the personal assets of the proprietor can be
utilised in case the business assets fall short of debt obligations.
iii. Direct incentives: As the sole proprietor enjoys all the profits and bears all the risks and losses associated with the
business, he/she gets direct incentives while running the business.
iv. Single ownership: It is managed and controlled single-handedly by the proprietor only.
v. Secrecy of information: In a proprietorship firm, all the decisions are taken by the proprietor; therefore, he/she retains
maximum business-related secrecy.
vi. Minimum government regulations: As a sole proprietorship firm is not governed by any laws and acts, there is minimum
government interference in its operations.
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Concept of Sole Proprietorship Or Sole Trader
क्या इस प्रश्न या उत्तर में कोई त्रुटि है?
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संबंधित प्रश्न
Features of sole trading concern.
Distinguish between Proprietorship and Joint Hindu Family Firm
Sole trading concern and Partnership firm .
A sole trading concern ensures ______________ business secrecy.
Match the pairs :
|
Group 'A' |
Group 'B' |
||
| (a) | Sole trader | (1) | Compensation upto Rs 20 lacs |
| (b) | Globalisation | (2) | Minimum two members |
| (c) | District Forum | (3) | Dr. Deming |
| (d) | Private company | (4) | Regional market |
| (e) | Total Quality Management | (5) | F. W. Taylor |
| (6) | Minimum seven members | ||
| (7) | Maximum secrecy | ||
| (8) | Compensation more than Rs 20 lacs | ||
| (9) | International market | ||
| (10) | Minimum secrecy | ||
Sole Trading Concern and Partnership
Select the proper option from the options given below and rewrite the completed sentence.
A sole proprietorship has ________ owner/owners.
Match the correct pairs.
Write a word or a phrase or a term which can substitute the following.
The owner is the sole manager and decision maker of his business.
Write a word or a phrase or a term which can substitute the following.
An artificial person created by law.
State Whether the Following Statement Is True Or False (Give Reason).
A sole trader can take prompt decisions and quick actions.
State Whether the Following Statement Are True Or False (Give Reason)
Business secrecy cannot be maintained in a Sole Trading Concern.
State Whether the Following Statement Are True Or False (Give Reason)
The liability of a sole trader is unlimited.
What do you understand by a sole proprietorship firm?
Kiran is a sole proprietor. Over the past decade, her business has grown from operating a neighbourhood corner shop selling accessories such as artificial jewellery, bags, hair clips and nail art to a retail chain with three branches in the city. Although she looks after the varied functions in all the branches, she is wondering whether she should form a company to better manage the business. She also has plans to open branches countrywide.
(a) Explain two benefits of remaining a sole proprietor
(b) Explain two benefits of converting to a joint stock company
(c) What role will her decision to go nationwide play in her choice of form of the organisation?
(d) What legal formalities will she have to undergo to operate business as a company?
The structure in which there is a separation of ownership and management is called
The Karta in Joint Hindu family business has
Profits do not have to be shared. This statement refers to
Provision of residential accommodation to the members at reasonable rate is the objective of
