Question

define a company and explain its features

Answer 1

Sole Proprietorship

Features:

1. Formation and closure- its formation and closure easy.

2. Sole risk bearer- A sole proprietorship is the sole risk bearer.

3. Sole profit recipient- A sole proprietor is the sole profit recipient.

4. Liability- The liability of a sole proprietor is unlimited. So his personalvassets may be used for the repayment of business debts.

5. Control- A sole proprietorship is controlled by the sole proprietor himself.

6. No separate legal entity- It has no separate legal entity apart from the sole proprietor.

7. Lack of continuity- The death, insanity, insolvency or imprisonment of the sole proprietor may lead to the closure of business.

Answer 2

Answer:

1. Formation and closure- its formation and closure easy.

2. Sole risk bearer- A sole proprietorship is the sole risk bearer.

3. Sole profit recipient- A sole proprietor is the sole profit recipient.

4. Liability- The liability of a sole proprietor is unlimited. So his personalvassets may be used for the repayment of business debts.

Explanation:

5. Control- A sole proprietorship is controlled by the sole proprietor himself.

6. No separate legal entity- It has no separate legal entity apart from the sole proprietor.

7. Lack of continuity- The death, insanity, insolvency or imprisonment of the sole proprietor may lead to the closure of business.