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Since an individual is himself as a owner, he need not consult anybody else. Hence he can take quick decisions.

Correct Answer is: (a) Wheeler

1. Government – Public Undertakings, Public Utilities. 

2. Private – Joint stock companies 

3. Co – operative society

(b) Unlimited liability

(a) Sole Proprietorship

(b) Sole trader

(d) Sole Proprietor

Proprietorship is a form of business organisation in which an individual introduces his own capital, uses his own skill and intelligence in the management of its affairs and is solely responsible for the results of its operations.

Single person’s intelligence and experience may not help him beyond a certain stage. Since he has to focus on each and every activity, his managerial ability is bound to be limited.

Since the capital is contributed by one individual only, business operations have necessarily to be on a limited scale.

(a) Unlimited Liability

(b) Sole trading business

(a) Sole trading concern

1. Ownership by one man: This is owned by single person. The sole trader contributes the required capital. He is not only the owner of the business but also manages the entire affairs.

2. Freedom of work and Quick Decisions: Since an individual is himself as a owner, he need not consult anybody else. Hence he can take quick decisions.

3. Unlimited Liability: When his business assets are not sufficient to pay off the business debts he has to pay from his personal property.

4. Enjoying Entire Profit: He strives tirelessly for the improvement and expansion of his business and enjoys all the benefits of his hard work.

5. Absence of Government Regulation: A sole proprietor concern is free from Government regulations. No legal formalities are to be observed in its formation, management or in its closure.

6. No Separate Entity: The sole trading concern comes to an end with death, disability, insanity and insolvency of the individual.

7. Maintenance of Secrecy: Since he/she manages all the affairs of the business, the secrecy can be maintained easily.

1. Limited Capital: Since the capital is contributed by one individual only, business operations have necessarily to be on a limited scale.

2. Limited Managerial Skill: Single person’s intelligence and experience may not help him beyond a certain stage. Since he has to focus on each and every activity, his managerial ability is bound to be limited.

3. Unlimited Liability: The creditors have the right to recover their dues even from the personal property of the proprietor in case the business assets are not sufficient to pay their debts.

4. Lack of Specialisation: Since the business unit is small and the financial resources are limited, experts in different fields cannot be employed to secure maximum advantages.

5. Hasty Decisions: Sole proprietor is more likely to take hasty decision as he need not consult anybody else.

A sole proprietor concern is free from Government regulations. No legal formalities are to be observed in its formation, management or in its closure.

1. Ownership by one man: This is owned by single person. The sole trader contributes the required capital. He is not only the owner of the business but also manages the entire affairs.

2. Freedom of work and Quick Decisions: Since.an individual is himself as a owner, he need not consult anybody else. Hence he can take quick decisions.

3. Unlimited Liability: When his business assets are not sufficient to pay off the business debts he has to pay from his personal property

Saravana Stores, Hotel Saravana Bhavan, Grocery store, Petty shop.

“Sole proprietorship is that form of business organisation which is owned and controlled by a single individual. He receives all the profits and risks of his property in the success or failure of the enterprise” – Wheeler.

Grocery store is more suitable for sole proprietorship business because of limited risk and less educated or uneducated can start the business

1. Sole trading concern

2. partnership firm 

3. Joint Hindu family business.

(d) Sole trading concern