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प्रश्न
Select the proper option from the options given below and rewrite the completed sentence.
A proprietor has ________ liability.
पर्याय
unlimited
limited
restricted
उत्तर
A proprietorship has unlimited liability.
Explanation:
Under unlimited liability, if the owner fails to pay the debts of the business, then his/her personal property can be utilised to pay the debt. This implies that there is no difference between the property of the owner and the business. The term “unlimited liability” pertains specifically to a sole proprietorship, as the proprietor is solely liable for the debts incurred by the business.
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संबंधित प्रश्न
Features of sole trading concern.
‘One man show’ type of business organization.
Distinguish between Proprietorship and Joint Hindu Family Firm
A sole trading concern ensures ______________ business secrecy.
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 short notes on the following.
Features of a proprietorship
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)
A sole trader has weak bargaining power.
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 board of directors of a joint-stock company is elected by
Profits do not have to be shared. This statement refers to
The capital of a company is divided into a number of parts each one of which is called
A partner whose association with the firm is unknown to the general public is called
Define the following business entities:
Sole Proprietorship
