Question

Below are given the merits and limitations of sole proprietorship form of business
organisation. Write ‘M’ against Merits and ‘L’ against Limitations in the space
provided against each.
(a) A sole proprietorship business is easy to form.
(b) A sole proprietor is personally liable for all the liabilities of the business.
(c) A sole proprietor has a limited capacity to raise funds for his business.
(d) A sole proprietor can maintain secrecy about the affairs of his business.
(e) A sole proprietor maintains good personal contact with the customers.

Answer 1

Explanation:

A sole proprietorship business location is not easy