MCQ on Sole Proprietorship with Answers Pdf - YB Study

MCQ on Sole Proprietorship with Answers Pdf

MCQ on Sole Proprietorship :

1. A business where an individual is both the owner and conductor of the business affairs is called__________________.

(1) Sole Proprietorship

(2) Partnership

(3) Corporation

(4) None of the above

Answer: 1


2. Who is called a sole proprietor?

(1) A sole proprietorship—also referred to as a sole trader.

(2) . A sole proprietorship is the easiest type of business to establish or take apart, due to a lack of government regulation.

(3) Both 

(4) None of these 

Answer: 3


3. What is a Sole Ownership?

(1) Company owned by the Government

(2) Company owned by a group of people

(3) Company owned by a single person

(4) Company owned by a dormant

Answer: C


4. A Sole Ownership firm is owned by?

(1) Single Person

(2) Group of Persons

(3) Managing Committee

(4) Central Government

Answer: 1


5. What is the disadvantage of being a sole proprietorship firm owner?

(1) Personal Control

(2) Easy Formation

(3) Unlimited Liability

(4) Faster Decision Making

Answer: 3


6. Which one of the following is NOT a feature of a sole proprietorship business?

(1) Separate Legal entity 

(2) Easy Dissolution 

(3) Easy Formation 

(4) None of these 

Answer: 1


7. What is the lifespan of a sole proprietorship?

(1) The life span of a sole proprietorship can be uncertain.

(2) 20 years 

(3) 10 years

(4) 4 Months 

Answer: 1


8. The oldest form of business organization is________

(1) Partnership.

(2) sole proprietorship

(3) joint-stock company

(4) co-operative undertaking.

Answer: 2


9. What are the advantages of proprietorship?

(1) Less paperwork.

(2) Easier tax setup.

(3) Fewer business fees.

(4) All of these 

Answer: 4


10. Which of the following is owned by a single person

(1) Private Company

(2) Public Company

(3) Joint Hindu Family

(4) Sole proprietorship

Answer: 4


11. What are the demerits of a sole proprietorship?

(1) No liability protection.

(2) Financing and business credit are harder to procure.

(3) Selling is a challenge. 

(4) Unlimited liability. 

(5) All of these 

Answer: 5


12. What are the features of a sole proprietorship?

(1) Sole proprietorships are the simplest business structure.  

(2) Sole Ownership

(3) Unlimited Liability. 

(4) All of these 

Answer: 4


13. The reason for the end of the sole proprietorship can be_________

(1) Insolvency

(2) Insanity

(3) Death

(4) All the above

Answer: 4


14. Sole Proprietorship is most suitable for________

(1) Medium-scale concerns

(2) Large-scale concerns

(3) Small-scale concerns

(4) None of the above

Answer: 3


15. Firms owned by one individual are known as

(1) Proprietorship

(2) Partnership

(3) Corporations

(4) None of the above

Answer: 1

Related Posts