Question

from police
Q25)After passing his 12class shenoy started his own business. He invested 2,00,000 as capital
which was given to him by his father. He takes all his decision himself and mange his business
himself only. But in this first year he incurred loss as the quality of the product was not good.
This created a financial problem for him. He took some loan from the bank. He started working
hard, lower the prices and informed his customers about the improved qualities of goods and also
that the prices are being reduced.
Because of this his sales increased and he was able to eam a profit in the second year. As the
decision remained secret with him as all the decision were his own.
a)Which business organization is shown in above paragraph.
b) Explain its 2 features.​

Answer 1

Here are the answers for the given paragraph:

Explanation:

(A) - "The sole proprietorship" is the business organization developed by the person in the given paragraph.

(B) - The sole proprietorship is the type of business that refers to a person who owns it and duly responsible for its success and debts.

Here are the features of the sole proprietorship:

• Discrete ownership

• Sole management and control

• Individual financing

• Unlimited responsibility

• Exclusive beneficiaries

• Uncomplicated closure of the business

• Limited area of operation