Which of the followings are the benefits of a sole proprietorship?I. It is easy to register and dissolve with minimum formalities.II. The registration fee is low.II. Easy to manage as management is done by one person (the proprietor).IV. Flexible, minimum regulatory requirement.V. Profits belong to the owner.

DEFINITION OF ENTREPRENEURSHIP

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Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]

A	I and II
B	II and III
C	III and IV
D	I, II, III, IV and V

Explanation:

Detailed explanation-1: -Sole proprietorship has the following advantage: Ease of starting a business, being your own boss, a pride of ownership, quick decision, direct incentive, confidentiality of information.

Detailed explanation-2: -Sole proprietorship can be operated under the name of the owner or some fictitious name. It is one of the most common forms of business structure that is found in India. It is regarded as an ideal choice for conducting small or medium-sized business.

Detailed explanation-3: -Compliance & Taxation. Since a proprietorship firm is not registered with any Government authority like the Ministry of Corporate Affairs, the compliance requirements are minimal. Further, the proprietor would only have to file income tax returns if the firm has taxable income of more than Rs. 2.5 lakhs per annum.

Detailed explanation-4: -Answer and Explanation: The correct answer is B) unlimited liability. A sole proprietorship form of business can be easily formed because there are hardly any government regulations.

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INTRODUCTION TO ENTREPRENEURSHIP

DEFINITION OF ENTREPRENEURSHIP