11th Standard Syllabus & Materials

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11th Standard English Medium Commerce Subject Sole Proprietorship Creative 3 Mark Questions with Solution Part - II

Published on: 27/06/2021

QB365 provides detailed and simple solution for every
Creative Questions in class 11 Commerce Subject. It will helps to get more idea about question pattern in every Creative questions with solution.

Download Tamil Nadu 11th Standard Commerce question papers, model tests, one-mark questions, important questions, and public exam papers in PDF format. Free study materials and answer keys for TN State Board students.

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Std: 11th Standard - Commerce

chapter: - Creative Questions

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Questions:

Generic 2

5 x 2 = 10

List out the ways in which the social necessity of sole tradership arises.

List out any five demerits of sole trading concern.

List out any five merits of sole trading concern.

List out any five features of sole trading concern.

'One-man business is the best in the world'- Explain.

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Answers Key:

Generic 2

5 x 2 = 10

(i) Solution to unemployment problem,
(ii) Provides investment avenues
(iii) Provision of goods at low price
(iv) Helps small producere
(v) Supply of quality goods
(vi) Philanthropic activities
(vii) Equal distribution of income and wealth and
(viii) Helpful to consumers.

Demerits of sole trading concern are:
(i) Limited capital
(ii) Limited managerial ability
(iii) Unlimited liability
(iv) Short life and
(v) Hasty decision.

Merits of sole trading concern are:
(i) Easy formation,
(ii) Direct motivation,
(iii) Flexibility,
(iv) Retention of business secrets and
(v) Quick decision.

Features of sole trading concern are:
(i) One-man ownership and control
(ii) Small capital
(iii) Unlimited liability
(iv) Enjoyment of entire profit and
(v) No separate legal entity.

William R. Basset has said that one-man control is the best in the world only when the business is small indeed, to allow one actually to know and supervise everything in the business.