MCQ on Sole Proprietorship with Answers Pdf
MCQ on Sole Proprietorship :
1. A business where an individual is both the owner and conductor of the business affairs is called__________________.
(1) Sole Proprietorship
(2) Partnership
(3) Corporation
(4) None of the above
Answer: 1
2. Who is called a sole proprietor?
(1) A sole proprietorship—also referred to as a sole trader.
(2) . A sole proprietorship is the easiest type of business to establish or take apart, due to a lack of government regulation.
(3) Both
(4) None of these
Answer: 3
3. What is a Sole Ownership?
(1) Company owned by the Government
(2) Company owned by a group of people
(3) Company owned by a single person
(4) Company owned by a dormant
Answer: C
4. A Sole Ownership firm is owned by?
(1) Single Person
(2) Group of Persons
(3) Managing Committee
(4) Central Government
Answer: 1
5. What is the disadvantage of being a sole proprietorship firm owner?
(1) Personal Control
(2) Easy Formation
(3) Unlimited Liability
(4) Faster Decision Making
Answer: 3
6. Which one of the following is NOT a feature of a sole proprietorship business?
(1) Separate Legal entity
(2) Easy Dissolution
(3) Easy Formation
(4) None of these
Answer: 1
7. What is the lifespan of a sole proprietorship?
(1) The life span of a sole proprietorship can be uncertain.
(2) 20 years
(3) 10 years
(4) 4 Months
Answer: 1
8. The oldest form of business organization is________
(1) Partnership.
(2) sole proprietorship
(3) joint-stock company
(4) co-operative undertaking.
Answer: 2
9. What are the advantages of proprietorship?
(1) Less paperwork.
(2) Easier tax setup.
(3) Fewer business fees.
(4) All of these
Answer: 4
10. Which of the following is owned by a single person
(1) Private Company
(2) Public Company
(3) Joint Hindu Family
(4) Sole proprietorship
Answer: 4
11. What are the demerits of a sole proprietorship?
(1) No liability protection.
(2) Financing and business credit are harder to procure.
(3) Selling is a challenge.
(4) Unlimited liability.
(5) All of these
Answer: 5
12. What are the features of a sole proprietorship?
(1) Sole proprietorships are the simplest business structure.
(2) Sole Ownership
(3) Unlimited Liability.
(4) All of these
Answer: 4
13. The reason for the end of the sole proprietorship can be_________
(1) Insolvency
(2) Insanity
(3) Death
(4) All the above
Answer: 4
14. Sole Proprietorship is most suitable for________
(1) Medium-scale concerns
(2) Large-scale concerns
(3) Small-scale concerns
(4) None of the above
Answer: 3
15. Firms owned by one individual are known as
(1) Proprietorship
(2) Partnership
(3) Corporations
(4) None of the above
Answer: 1