Advertisements
Advertisements
प्रश्न
Write short answer of the following.
State the demerits of proprietorship.
उत्तर
The following are the limitations of a sole proprietorship:
i. Limited capital: The financial resources that are available to a sole proprietor are limited to his/her personal savings and the borrowings that he/she can raise from relatives and friends. Thus, the scope of enlarging its capital falls short.
ii. Limited managerial abilities: A sole proprietor manages all core functions by himself. Being the sole owner, he/she has limited skills, imagination and energy. As a result, he/she cannot perform all managerial functions single-handedly.
iii. Uncertain life: The life of the sole proprietorship business is uncertain as it is adversely affected in the event of death, insanity, bankruptcy or physical ailment of a sole proprietor.
iv. Unlimited liability: The liability of a sole proprietor is unlimited. If the proprietor fails to pay the debts of the business, his/her personal property can be used to pay the debts.
v. Unsound business decisions: A sole trader takes all decisions himself/herself. As a result, the probability of taking wrong decisions is quite high.
vi. Lack of specialisation: A sole proprietorship has limited resources. As a result, the proprietor may not be able to employ specialised employees to handle specific business operations.
APPEARS IN
संबंधित प्रश्न
The maximum number of partners for a firm carrying on banking business is .............. .
Select the proper option from the options given below and rewrite the completed sentence.
From the point of continuity ________ business organizations is the most suitable.
Write short note on the following.
Merits of Joint Hindu family
Write short note on the following.
Demerits of Co-operative society
State with reasons whether the following statement true or false.
The liability of a Karta in a Joint Hindu family firm is limited.
State with reasons whether the following statement true or false.
The maximum number of members in a Joint Hindu family is 20.
State with reasons whether the following statement true or false.
Company form of organization has developed before industrial revolution.
State with reasons whether the following statement true or false.
Share holders can manage the business.
State with reasons whether the following statement true or false.
The main purpose of a co-operative organization is to earn profit.
State with reasons whether the following statement is true or false.
The owner of the sole proprietorship is the sole decision maker of his business.
State with reasons whether the following statement is true or false.
Sole Proprietorship is useful for small business.
Write short answer of the following.
State the merits of partnership firm.
Long answer type question.
Define partnership firm. Explain its merits and demerits.
Long answer type question.
Define a Joint Hindu family firm. Explain its merits and demerits.
Distinguish between: Partnership Firm and Joint-stock Company
Why is it important to choose an appropriate form of organisation?
Discuss the factors that determine the choice of form of organisation.
