Sole Proprietorship Concepts and Challenges

The video tutorial introduces various forms of business organizations, focusing on sole proprietorship. It discusses the advantages, such as simplicity and control, and the legal aspects, including liabilities. The merits of sole proprietorship, like decision-making and confidentiality, are highlighted, along with its limitations, such as limited resources and managerial ability.

What is the primary factor to consider when deciding the form of business organization?

• Location of the business

• Type of products sold

• Advantages and disadvantages of each type

• Number of employees

Which of the following is NOT a form of private sector undertaking discussed in the video?

• Cooperative Society

• Public Corporation

• Joint Hindu Family Business

• Sole Proprietorship

What is the simplest form of business organization?

• Cooperative Society

• Joint Stock Company

• Sole Proprietorship

• Partnership

Who manages and controls a sole proprietorship?

• A group of partners

• A board of directors

• An individual

• A cooperative society

What is a key feature of sole proprietorship regarding liability?

• Shared liability

• No liability

• Unlimited liability

• Limited liability

Which of the following is a merit of sole proprietorship?

• Limited managerial ability

• High legal formalities

• Confidentiality of information

• Complex decision-making process

What does 'direct incentive' mean in the context of sole proprietorship?

• Sharing profits with employees

• Owner keeps all profits

• Government incentives

• Customer discounts

Which of the following is a limitation of sole proprietorship?

• Unlimited capital

• Limited life of business

• Shared control

• High managerial ability

Why might a sole proprietorship struggle with long-term loans?

• Due to shared ownership

• Due to unlimited liability

• Due to high profits

• Due to limited resources

What is a common challenge faced by sole proprietors in terms of managerial ability?

• Being an expert in all areas

• Hiring too many employees

• Excessive delegation

• High legal formalities