Q.In a sole proprietorship business, the entire profit of the business belongs to:

This question tests who is entitled to the reward of the business — and it is the exact mirror image of who must bear its losses. …

Since a sole proprietorship is owned by a single individual who supplies all the capital and bears all the risk, the entire profit of the business belongs to that proprietor alone — there is no partner or shareholder with whom it must be shared. This is the direct counterpart of the fact that he must also bear the whole of any loss by himself. Employees receive only their agreed wages or salary (option b is wrong), the government receives only the tax lawfully due (option c is wrong), and …

Thinking employees or creditors share in the profit — they are entitled only to their wages or the repayment of their dues …