Challenges and Limitations of Sole Proprietorship

The video discusses the disadvantages of sole proprietorship, focusing on limited resources, limited business life, unlimited liability, and limited manual capability. It highlights the challenges faced by sole proprietors, such as financial constraints, business continuity issues, and operational limitations. The video concludes with a preview of upcoming topics on partnership firms.

What is the primary focus of the video?

• Features of corporations

• Benefits of limited liability companies

• Disadvantages of sole proprietorship

• Advantages of partnership

Which of the following is NOT a feature of sole proprietorship?

• Limited resources

• Unlimited liability

• Multiple owners

• Single ownership

What is one of the disadvantages of sole proprietorship mentioned in the video?

• Limited resources

• High taxation

• Complex management

• Limited liability

Why is the life of a sole proprietorship business considered limited?

• Due to high competition

• Because it depends on the owner's life

• Because of government regulations

• Due to limited market reach

What is the impact of limited resources on a sole proprietorship?

• Higher profitability

• Limited growth potential

• Increased market share

• Better customer service

What does unlimited liability mean for a sole proprietor?

• The owner has unlimited resources

• The business can take unlimited loans

• The business has unlimited growth potential

• The owner is responsible for all debts

Which of the following is a limitation of manual capability in sole proprietorship?

• Limited access to technology

• Limited managerial skills

• Limited market reach

• Limited product range

What is a common challenge faced by sole proprietors when seeking loans?

• High interest rates

• Lack of collateral

• Complex application process

• Limited loan options

How does the absence of the sole proprietor affect the business?

• The business continues to operate smoothly

• The business may face operational challenges

• The business gains more customers

• The business gets more investments

What will be discussed in the upcoming videos?

• Corporation features

• Non-profit organizations

• Partnership firm and its features

• Limited liability companies