Tag: sole proprietorship - meaning & features

Questions Related to sole proprietorship - meaning & features

The maximum number of partners allowed in the banking business are ______________.

elements of business sole trade meaning, features and merits of sole proprietorship sole proprietorship - meaning & features formation, characteristics, merits & demerits and objectives of sole proprietorship

  1. Twenty

  2. Ten

  3. No limit

  4. Two

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Correct Option: B
Explanation:

The maximum number of members that can exist in partnership is 10 in case of a firm carrying on banking business and 20 in case of any other business.

Provision of residential accommodation to the member at reasonable rates is the objective of ________________.

elements of business sole trade meaning, features and merits of sole proprietorship sole proprietorship - meaning & features formation, characteristics, merits & demerits and objectives of sole proprietorship

  1. Producer's co-operative

  2. Consumer's co-operative

  3. Housing co-operative

  4. Credit co-operative

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Correct Option: C
Explanation:

Cooperative housing societies are formed to provide residential accommodation to its members at a reasonable rate. They purchase land, develop it and construct houses or flats and allot the same to members.

Which of the following is not characteristic of LLP?

elements of business sole trade meaning, features and merits of sole proprietorship sole proprietorship - meaning & features formation, characteristics, merits & demerits and objectives of sole proprietorship

  1. A legal entity having perpetual succession, separate from its partners.

  2. The mutual rights and duties of partners of an LLP inter se and those of the LLP and its partners shall be governed by an agreement between partners

  3. Each partner is an equal member in a LLP company.

  4. Easy to establish than sole proprietorship.

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Correct Option: D

____________ is the most flexible kind of business Organisation.

elements of business sole trade meaning, features and merits of sole proprietorship sole proprietorship - meaning & features formation, characteristics, merits & demerits and objectives of sole proprietorship

  1. Sole Proprietorship

  2. Partnership

  3. Co-Operatives and Trusts

  4. Limited Liability Partnership

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Correct Option: A

The business in which only a single owner arranges the capital is ____________.

elements of business sole trade meaning, features and merits of sole proprietorship sole proprietorship - meaning & features formation, characteristics, merits & demerits and objectives of sole proprietorship

  1. Partnership

  2. Hindu joint family business

  3. Sole proprietorship

  4. NGOs

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Correct Option: C

Following is not a characteristic of sole proprietorship business _______________.

elements of business sole trade meaning, features and merits of sole proprietorship sole proprietorship - meaning & features formation, characteristics, merits & demerits and objectives of sole proprietorship

  1. Easy to form and wind up

  2. Difficult to maintain secrets

  3. Direct motivation

  4. None of the above

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Correct Option: B

One of the hardships of a sole proprietorship is that _________________.

elements of business sole trade meaning, features and merits of sole proprietorship sole proprietorship - meaning & features formation, characteristics, merits & demerits and objectives of sole proprietorship

  1. Capital is limited to owner's savings and bank loans

  2. It has to complete too many registration fomalities

  3. As they are government owned there is no profit motive

  4. More tax is charged on them

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Correct Option: A

One of the best advantages of proprietorship is that _________________.

elements of business sole trade meaning, features and merits of sole proprietorship sole proprietorship - meaning & features formation, characteristics, merits & demerits and objectives of sole proprietorship

  1. Limited liability is enjoyed

  2. Shares can be sold to raise capital

  3. Profits are to be shared

  4. The owner has independence

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Correct Option: D

The risk of the sole proprietorship business is shared with the employees of the business _______________.

elements of business sole trade meaning, features and merits of sole proprietorship sole proprietorship - meaning & features formation, characteristics, merits & demerits and objectives of sole proprietorship

  1. Partly true

  2. True

  3. Partly false

  4. False

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Correct Option: D

Characteristics of sole proprietorship form of business is/ are
$(1)$ Single owner
$(2)$ Unlimited liability
$(3)$ Control by partner
$(4)$ No sharing of profit and loss
Select the correct answer from the options given below.

elements of business sole trade meaning, features and merits of sole proprietorship sole proprietorship - meaning & features formation, characteristics, merits & demerits and objectives of sole proprietorship

  1. $(1)$ and $(4)$ only

  2. $(2), (3), (4)$

  3. $(2)$ and $(1)$ only

  4. $(4), (2)$ and $(1)$

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Correct Option: D