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SCHOOL,
RASIPURAM.
11th Commerce
Chapter 4: Sole Proprietorship
1 marks:
1. Which is the oldest form of Business organisation?
(a) Sole Proprietorship
(b) Partnership
(c) Co-operative Society
(d) Company
[Ans. (a) Sole Proprietorship]
2 Marks:
4. For which of the following types of business do you think a sole proprietorship
form of organisation would be more suitable, and why?
(a) Grocery store (b) Medical store
(c) Craft centre (d) Legal consultancy
(e) Internet cafe
Ans. Sole proprietorship form of business organisation will be more suitable for
grocery store, medical store, craft centre and internet cafe because these
business require less capital and limited managerial talent. These business also
require personalised services and risk is low in these business.
3 Marks
This is owned by single person. The sole trader contributes the required
capital. He is not only the owner of the business but also manager of the entire
affairs.