Question

Q7. Shivam is a successful retailer in his area and is selling grocery items. Due to the surge in COVID-19 cases, he saw an opportunity to sell sanitizers and masks. He quickly took the decision and started selling both sanitizers and masks.

He took this risk because he has no experience in selling such kinds of goods. He was aware that the profit or loss arising out of this new venture will solely belong to him. He knows that if business will suffer losses he will have to bring money from his personal property.

You have to answer the following:

(i)What form of business is highlighted in the above paragraph?

(ii)What characteristics of such a form of business are highlighted in the above paragraph?​

Answer 1

Answer:

i) sole proprietorship

Explanation:

In this concept of he suffer from loss he has to pay out his assets for recovery of liability.

sole risk barrier and profit recipient