Question

Sole trading is the best when
(1) mule capital is required
(3) no capital is required
(2)
(4)
more capital is required
none of these​

Answer 1

Answer:

no capital is required

Answer 2

Sole trading is basically sole proprietorship business in which a single individual is responsible for commencing and retaining the business.It is a relative simple form of business with minimum capital.Hence,the correct answer is option 1) or mule capital is required.

Explanation:

In sole trading,a single individual assumes all the roles,responsibilities and decision making of the business.It is relatively simple to begin compared to other types of businesses and the sole trader has absolute control over the company assets and liabilities.It also requires a very small amount of financial capital to start and continue business operations and any modifications or changes to the business operation also easier and the entire business process is flexible when compared to other types of business.