ECONOMICS
COMPETITION AND MARKET STRUCTURES
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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sole proprietorship
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monopoly
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perfect competition
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corporation
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Detailed explanation-1: -simpson has which type of business organization? Mr. Simpson is simply a Sole proprietor. It is the simplest business form under which one can operate a business.
Detailed explanation-2: -Sole proprietors have unlimited personal liability. There is no legal distinction between the owner and the business. This means that creditors of the business and individuals who have other claims against the owner can reach both the owner’s business and personal assets.
Detailed explanation-3: -Examples of sole proprietors include small businesses such as, a local grocery store, a local clothes store, an artist, freelance writer, IT consultant, freelance graphic designer, etc.
Detailed explanation-4: -A sole proprietorship is a non-registered, unincorporated business run solely by one individual proprietor with no distinction between the business and the owner. The owner of a sole proprietorship is entitled to all profits but is also responsible for the business’s debts, losses, and liabilities.
Detailed explanation-5: -The liability of sole proprietor is unlimited.