GK
BUSINESS ECONOMICS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Define sole proprietorship
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A form of business owned by two or more people who share management and profits.
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A business owned by one person
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A form of business that declares the business as a separate, legal organization led by a group of officers known as the board of directors; often owned by stockholders
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An authorization granted by a government or company to an individual or group that allows them to sell a company’s products under the company name
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Explanation:
Detailed explanation-1: -A Sole proprietorship is an enterprise owned exclusively by one natural person and in which there is no legal distinction between the owner and the business entity. The entrepreneur exercises his activity without having created a distinct legal person.
Detailed explanation-2: -A sole proprietorship is an unincorporated business that one person owns and manages. As the business and the owner are not legally separate, it is the simplest form of business structure. It is also known as individual entrepreneurship, sole trader, or simply proprietorship.
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