TN STATEBOARD 11th COMMERCE - UNIT 3 - CHAPTER 4 - SOLE PROPERITORSHIP ADDITIONAL QUESTIONS
I. Choose the Correct Answer:
Question 1.
…………….. is that form of business organisation which is owned
and controlled by a single individual.
(a) Sole trading concern
(b) Partnership firm
(c) Joint Hindu family business
(d) Joint stock companies
Answer:
(a) Sole trading concern
Question 2.
…………….. is known as individual entrepreneurship.
(a) Partnership
(b) Sole trader
(c) Joint stock company
(d) Co – operative
Answer:
(b) Sole trader
Question 3.
When his business assets are not sufficient to pay off the
business debts, he has to pay from his personal property.
(a) Unlimited Liability
(b) Flexibility
(c) Small capital
(d) Limited Liability
Answer:
(a) Unlimited Liability
Question 4.
“He receives all the profits and risks all of his property
in the success or failure of the enterprise”- was said by
(a) Wheeler
(b) J.L. Hansen
(c) H.Haney
(d) O.R. Krishnasamy
Answer:
(a) Wheeler
Question 5.
Which of the following is under non – corporate enterprise?
(a) Government
(b) Co – operative
(c) Company
(d) Sole trading concern
Answer:
(d) Sole trading concern
II. Very Short Answer Questions
Question 1.
How was the decisions taken in sole proprietorship?
Answer:
Since an individual is himself as a owner, he need not
consult anybody else. Hence he can take quick decisions.
Question 2.
What should be the Government role in sole proprietorship?
Answer:
A sole proprietor concern is free from Government
regulations. No legal formalities are to be observed in its formation,
management or in its closure.
III. Short Answer Questions
Question 1.
What is limited capital?
Answer:
Since the capital is contributed by one individual only,
business operations have necessarily to be on a limited scale.
Question 2.
What is limited managerial skill?
Answer:
Single person’s intelligence and experience may not help him
beyond a certain stage. Since he has to focus on each and every activity, his
managerial ability is bound to be limited.
For future Learning
Question a.
Mahesh is a young graduate who has inherited a sum of Rs 1,
00,000 by way of family savings. He also has a family house to which he has
sole title as the only son of his father. He is thinking of starting a small
factory for the manufacture of plastic toys. What form of ownership
organisation will you advise him to choose?
Answer:
Sole Trader.
Question b.
Amar started a business on his own. He has his father
helping him with the accounts and his brother helps him with looking after
customers in the evening. Amar pays a monthly salary to his father and brother.
Identify the form of business organisation.
Answer:
Sole Trader.