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Question Practice

What is a common reason individuals prefer to start a sole proprietorship over other business types?

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

What is a common reason indivi...

Single Answer MCQ
Q-00064389

What is a common reason individuals prefer to start a sole proprietorship over other business types?

1

Greater potential for rapid expansion

2

Simplicity and full control

3

Need for diverse investor participation

4

Limited liability protection

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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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