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Question Practice

What is the primary reason some entrepreneurs opt for a sole proprietorship despite its risks?

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 the primary reason som...

Single Answer MCQ
Q-00064396

What is the primary reason some entrepreneurs opt for a sole proprietorship despite its risks?

1

Access to public capital

2

Possibility of personal tax benefits

3

Necessity for stakeholder input

4

High startup costs

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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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