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Question Practice

How does a sole proprietorship typically respond to financial risks compared to a corporation?

Attempt the question, check the explanation, and continue with similar questions to build confidence before exams.

MCQ_SA
CBSE
Class 11
Business Studies
Business Studies
Forms of Business Organisation
Question Bank

How does a sole proprietorship...

Single Answer MCQ
Q-00064388

How does a sole proprietorship typically respond to financial risks compared to a corporation?

1

It has less financial liability.

2

The owner bears personal financial risk.

3

It can transfer risk through shares.

4

It has greater access to capital markets.

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Q1.

What is a defining characteristic of a sole proprietorship?

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Q2.

Which of the following is a disadvantage of a sole proprietorship?

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Q3.

In a sole proprietorship, the profits are:

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Q4.

Which feature of a sole proprietorship makes it easier to form compared to other business types?

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