Question

A. Under what conditions is the sole proprietorship suitable?​

Answer 1

Business which requires low capital investment is suitable under sole proprietorship concerns. Therefore, small-scale units or units which do not involve production on a large-scale can be conveniently carried on under sole proprietorship.

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Answer 2

Explanation:

1. If you don't have much capital to start the business at larger level then sole proprietorship is the best.
2. Secondly, the sole proprietor enjoys the benefit of secrecy.
3. He is sole owner of all the assets of the business
4. He has a complete personal control over the business
5. He is self- inspired by the fact that whatever profit he gets will go into his pocket.