Q.In a sole proprietorship, the liability of the owner for the debts of the business is:

Sole proprietorship, run by a single owner with the least formality, is the earliest and simplest form of business organisation, so it is the oldest.

Sole proprietorship is a form of business owned, managed and controlled by one individual who provides the capital, takes all decisions, enjoys all profits and bears all risks and losses alone. It needs almost no legal formality to start, which is why it emerged first, long before partnerships, companies and co-operative societies developed as more complex forms.

The other options came later: partnership grew out of the need for more capital and skills, companies from the need for large-scale finance and limited liability, and co-operatives from the need for mutual help.

The oldest form of business organisation is the sole proprietorship, so the correct option is (b).

In the sole proprietorship chapter of the Tamil Nadu HSC Commerce syllabus, this form is described as the earliest and simplest type of business.

• Sole proprietorship is owned, managed and controlled by a single individual. Because it needs little capital and few legal formalities, it came into existence long before other forms and is therefore the oldest form of business organisation.

• Partnership, joint stock company and co-operative society developed later as business needs grew larger and more complex.

The correct answer is option (c) Sole Proprietor, the only form in which ownership, establishment and management rest with a single person.

Among the given forms of organisation:

• A co-operative society is owned and managed jointly by its members through an elected managing committee, so control is not with one person.
• A joint enterprise / joint stock company is owned by many shareholders and managed by a board of directors — clearly not a single individual.
• A government company is owned by the government and run by directors nominated by it.
• A sole proprietorship is the simplest form of business, set up, financed, owned and managed by a single person who alone takes all decisions, bears all the risk and keeps all the profit.

This single-person feature — no separation between owner and manager — is the defining characteristic of the sole trader in the Tamil Nadu HSC Commerce course.