Answer: The correct answer is Limited Liability.
Which of the following is not the features of sole proprietorship?
In case of proprietorship, owner and business both are same as the proprietor is only the sole owner of the business. Hence separate legal entity concept does not applies in the proprietorship business.
Which of the following is not the advantage of the sole trader?
Disadvantages of sole trading include that: you have unlimited liability for debts as there’s no legal distinction between private and business assets. your capacity to raise capital is limited. all the responsibility for making day-to-day business decisions is yours.
What are the features of sole?
The salient features of sole proprietorship form of organization are as under:
- Single Ownership. A sole trading concern is owned by one individual.
- Personal Organization or Common Identity.
- Capital.
- Unlimited Liability.
- One Man Control.
- Profits and Losses.
- No Special Legislation.
Which one of the following is a feature of sole proprietorship?
In the sole proprietorship business, the sole owner has unlimited liability. In this case, the owner is himself liable to pay all the liabilities. If he takes a loan for its business then he will be liable for all the debts.
Which of the following is NOT feature of sole trader Mcq?
Answer: The correct answer is Limited Liability.
What is the sole proprietorship Mcq?
Sole proprietorship is the simplest and the oldest form of business under which an individual is able to conduct business. It does not need to be registered or incorporated. Therefore, it is not considered as a legal entity. Sole proprietorship can be operated under the name of the owner or some fictitious name.
Which of the following is an advantage of sole proprietorship Mcq?
Answer: (c) partnership. Which of the following is an advantage of a sole proprietorship? (a) ease of starting a business.
Which of the following is NOT merit of sole trading concern *?
The disadvantages of sole trading concern are: Limited capital: Due to the investment of single owner, the capital of a sole trading concern is limited. Such limited capital is insufficient for large-scale production and marketing of goods and services.
Which of the following is false regarding a sole proprietorship firm?
Which of the following is FALSE regarding a sole proprietorship? A sole proprietor is not personally liable for obligations of the business. This is False B/C A sole proprietor is personally liable for any losses or obligations associated with the business.
What are 3 features of a sole proprietorship?
Some of the key features of a sole proprietorship include:
- simplicity in its business structure;
- sole ownership;
- unlimited liability for the sole proprietor;
- the sole proprietor not having to share profits; and.
- minimal formalities.
Who is called a sole trader Class 11?
A sole proprietorship—also referred to as a sole trader or a proprietorship—is an unincorporated business that has just one owner who pays personal income tax on profits earned from the business.
What are the 5 main characteristics of a sole proprietorship?
The five characteristics of sole proprietorship are as follows:
- Sole owner of the business.
- Unlimited liability.
- No legal entity.
- Sole decision maker.
- Can wrap up the business anytime.
What is the features of sole trading concern?
A sole trading concern is a ‘One man show”. No separate legal status: Sole trader and his business are considered one and the same in the eyes of law. Thus, it does not enjoy a separate legal status. Direct Contacts with Customers and Employees: A sole trader directly deals with customers and employees.
What are the 11 characteristics of a sole trader?
Characteristics of Sole Proprietorship
- Complete the command. As a sole proprietor, you own and control your whole firm.
- Consistency. This connects to the previous point.
- It is not a distinct legal entity.
- Indefinite liability.
- Individual taxation.
- Privacy.
Which of the following is not a limitation of sole proprietorship business?
There are minimum formalities required for the commencement and winding up of a sole proprietorship firm. There is no separate law governing it. Therefore, easy formation is not a limitation.
Which is not a feature of sole proprietorship a unlimited liability B limited managerial ability C ease of formation d quick decision making?
Unlimited Liability: A great drawback of sole proprietorship is its unlimited liability or high personal risk.
Which is not a feature of a partnership business?
Sharing profit is not a real test of partnership, the employees, creditors also share the profit but cannot be called partners in the absence of agreement of partnership.
Which of the following is the characteristic of a business Mcq?
All the options given are the characteristics of business. Production of goods takes place in order to sell it in exchange for money. A business can never take place without risk. There is always risk of loss due to theft,fire,natural calamities,change in the preference of customers,etc.
Is the objective of sole trade?
Sole trader starts his/her business with an objective of earning independent livelihood using his/her skills– this is a true statement. Sole traders operate mostly on a small-scale basis and their number is large. Sole trader can be referred as the single individual who takes all initiatives and run the business.
What is limited liability ?’ Mcq?
What is ‘limited liability?’ a) Limited liability refers to how much the directors have to contribute in the event of the company becoming insolvent.