Tag: sole proprietorship - meaning & features

Questions Related to sole proprietorship - meaning & features

Multiple choice business organisation and correspondence sole trade meaning, features and merits of sole proprietorship sole proprietorship - meaning & features formation, characteristics, merits & demerits and objectives of sole proprietorship

Sole proprietorship form is not suitable _______________.

  1. Where capital requirement is large and risk involvement is heavy.

  2. Where manual skill is required.

  3. Where the market for the product is small and local.

  4. All of above.

Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Sole proprietorships are not suitable for large-scale operations requiring significant capital or involving high financial risk, as the owner's resources and liability are limited to their personal capacity.