Commerce · Class 11 Commerce
Ch 4Sole Proprietorship — Class 11 Commerce, concept-first.
A sole proprietorship is the oldest, simplest and most common form of business organisation. As the name itself suggests — sole meaning single and proprietor meaning owner — it is a business owned, financed, managed and controlled by one single individual.
Key concepts
Hover a concept to preview it and jump to its most relevant Q&A.
Meaning and Features of Sole Proprietorship
A sole proprietorship is a business owned, financed, managed and controlled by a single individual who supplies all the capital, takes all decisions, and enjoys all profits while bearing all losses and risks alone.
Most relevant Q&A
- In a sole proprietorship, the liability of the owner for the debts of the business is: (a) Limited to the capital contributed (b) Limited to…Free
- In a sole proprietorship business, the entire profit of the business belongs to: (a) The proprietor alone (b) The proprietor and his employe…Preview
- Define sole proprietorship and state who supplies the capital and bears the risk in it.Free
- State any four features of a sole proprietorship.Preview
- What are the non-corporate enterprises ?Preview
Chapter contents
The NCERT structure, section by section. Open a section to see its questions, then read the concept-first solution.
Meaning and Definition of Sole Proprietorship
A sole proprietorship is the oldest, simplest and most common form of business organisation. As the name itself suggests — sole meaning single and proprietor meaning owner — it is a business owned, fi…
Features of Sole Proprietorship
The essential features (characteristics) of a sole proprietorship follow directly from the fact that a single person owns and runs the business:
Formation and Registration Requirements
One of the biggest attractions of a sole proprietorship is how easily it comes into being. There is no separate law that governs the formation of a sole proprietorship, and generally no compulsory reg…
Merits of Sole Proprietorship
The sole proprietorship form offers several real advantages, most of which flow from its simplicity and single-owner nature:
Limitations of Sole Proprietorship
The very features that make a sole proprietorship simple and flexible also give rise to its main limitations:
Suitability of Sole Proprietorship
Given its features, merits and limitations, a sole proprietorship is not suitable for every kind of business — it fits some situations very well and others very poorly.
Sample & Board Papers
Sample papers and previous-year board questions for this subject.
+−Show 9 questionsHide questions9 questions
- Q1What are the non-corporate enterprises ?Preview
- Q2(a) Explain any five characteristics of sole trading business. OR (b) Explain any five classifications of contract on the basis of the valid…Preview
- Q3In which form, the owner, establisher and manager is only one? (a) Co-operative Society (b) Joint Enterprise (c) Sole Proprietor (d) Governm…Preview
- Q4(a) Explain the characteristics of sole trading business. OR (b) Explain any five essentials of a valid contract.Preview
- Q5The oldest form of Business organisation is ______. (a) Co-operative society (b) Sole Proprietorship (c) Company (d) PartnershipPreview
- Q6Who is called a Sole Trader ?Preview
- Q7What are the non-corporate enterprises ?Preview
- Q8Which is the oldest form of business organisation ? (a) Co-operative society (b) Sole proprietorship (c) Company (d) PartnershipPreview
- Q9A major disadvantage of sole proprietorship is ....... (a) Limited Liability (b) Unlimited Liability (c) Easy formation (d) Quick decisionPreview
More questions
9 Q+−Show 3 questionsHide questions3 questions
- Q1In a sole proprietorship, the liability of the owner for the debts of the business is: (a) Limited to the capital contributed (b) Limited to…Free
- Q2In a sole proprietorship business, the entire profit of the business belongs to: (a) The proprietor alone (b) The proprietor and his employe…Preview
- Q3Which of the following is generally true about starting a sole proprietorship? (a) It must be registered under a special Sole Proprietorship…Preview
+−Show 3 questionsHide questions3 questions
+−Show 3 questionsHide questions3 questions
- Q7Explain the merits (advantages) of sole proprietorship as a form of business organisation.Free
- Q8Explain the limitations (disadvantages) of sole proprietorship as a form of business organisation.Preview
- Q9For what kinds of businesses is the sole proprietorship form most suitable? Explain, giving reasons and examples.Preview