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Question
Justify the following statement.
Liability of a ‘Sole trader’ is Unlimited.
Solution
- One Of the main features of a sole trader is unlimited liability.
- If the sole trader becomes insolvent and if his business assets are insufficient to pay off his business debts, he will have to use his private property in order to pay off his creditors.
- There is no distinction between business property and private property in case of a sole trading concern. Thus, the liability of a sole trader is unlimited.
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RELATED QUESTIONS
State True or False:
Sole trader is the decision-maker of the business.
State True or False:
Sole trading concern operates in local markets.
State True or False:
Sole proprietorship is useful for small business.
Select the correct option:
| A | B |
| Forms of business organisation | ______________ |
Select the correct option:
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| Minimum 2 and maximum 50 | ______________ |
Answer in one sentence.
What is sole Trading concern?
Correct the underlined word and rewrite the following sentence.
There is less secrecy in Sole Trading concern.
Explain the following term/concept:
Sole Trading Concern.
Distinguish between.
Sole Trading Concern and Partnership Firm.
Answer in brief.
State any four features of Sole Trading Concern.
Justify the following statement.
Sole proprietorship is useful for small business.
Attempt the following:
Explain the features of Sole Trading Concern.
Give one word/phrase/term.
The members of the Joint Hindu Family firm.
