A production unit owned by a single individual, is known as:
(a) A partnership (b) A private company
(c) Sole proprietorship (d) A public production unit
Answers
Answer: Option (c) Sole proprietorship
Explanation:
Factories, shops, offices, are mostly owned by single person or families or groups . Their sole motive is to earn profit by producing goods and services which are meant for sale in the market .
The private sector units are categorized on the basis of their ownership like
(a) Sole proprietorship
(b) Partnership
(c) Cooperative Society
(d) Company or Corporations
(e) Private non- profit organizations
Sole proprietorship: Under this ownership the production units are owned by an individual. He/She is assigned to look into the matters relating to management as well as efficient production of the unit. It is also the responsibility of the owner to keep the unit profitable and not make it a loss making concern.
Hope this helps.