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Published on: 13/05/2022
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Questions + Answers key
Take MCQ Commerce Test1.
'A sole trader has higher credit rating' - Explain
2.
How is the liability of owner in sole propritorship?
3.
Why do sole traders lose the economies of large-scale production?
4.
How does a sole trader business enterprise help provide self-employment?
5.
State the various kinds of Non-corporate enterprises.
1.
The liability of a sole trader is unlimited. Since, apart from his business assets even his private properties are also available for satisfying the claims of creditors. Hence, creditors may give more loans because they can get back the loan from the personal properties of sole trader. Thus high credit rating helps sole trader to borrow more funds from suppliers and banks.
2.
The liability of the Sole Proprietorship is unlimited. When his business assets are not sufficient to pay off the business debts he has to pay from his personal property.
3.
Because of limited capital and skill, the sole traders have to work on a small scale basis. thus he is deprived of the economics of large-scale operation.
4.
(i) Sole Proprietorship provides self-employment opportunity to many persons with small resources.
(ii) It offers a way of life for securing the means of livelihood to those who do not want to serve under others.
(iii) It makes self-dependent by providing self-employment.
5.
The various kinds of non-corporate enterprises are:
(i) Sole Proprietorship
(ii) Partnership
(iii) Joint Hindu Family Business
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Tamilnadu Stateboard 11th Standard Subjects
Maths
Commerce
Economics
Biology
Business Maths and Statistics
Accountancy
Computer Science
Physics
Chemistry
Maths
Biology
Economics
Physics
Chemistry
History
Business Maths and Statistics
Computer Science
Accountancy
Computer Applications
History
Computer Technology
Commerce
Computer Applications
Computer Technology
Tamil
English
French
Tamilnadu Stateboard Standards
