IV. Long Answer Questions<\/span><\/p>\nQuestion 1.
\nExplain the characteristics of Sole trading business.
\nAnswer:
\nThe following are the characteristics of a Sole Trader.<\/p>\n
1. Ownership by one man:
\nThis is owned by single person. The sole trader contributes the required capital. He is not only the owner of the business but also manager of the entire affairs.<\/p>\n
2. Freedom of work and Quick Decisions:
\nSince the individual is himself as an owner, he need not consult anybody else. Hence he can take quick decisions.<\/p>\n
3. Unlimited Liability:
\nWhen his business assets are not sufficient to pay off the business debts he has to pay from his personal property.<\/p>\n
4. Enjoying Entire Profit:
\nHe strives tirelessly for the improvement and expansion of his business and enjoys all the benefits of his hard work.<\/p>\n
5. Absence of Government Regulation:
\nA sole proprietor concern is free from Government regulations. No legal formalities are to be observed in its formation, management or in its closure.<\/p>\n
6. No Separate Entity:
\nThe sole trading concern comes to an end with death, disability, insanity and insolvency of the individual.<\/p>\n
7. Maintenance of Secrecy:
\nSince he\/she manages all the affairs of the business, the secrecy can be maintained easily.<\/p>\n
<\/p>\n
Question 2.
\nWhat are the advantages of the Sole trading business?
\nAnswer:
\n1. Easy Formation:
\nNo legal formalities are required to initiate a sole trading concern. Any person capable of entering into a contract can start it, provided he has the necessary resources for it.<\/p>\n
2. Incentive to Work hard:
\nThere is a direct relationship between effort and reward. The fact that the entire profit can be taken by himself without sharing with anybody else induces him to work ceaselessly.<\/p>\n
3. Small Capital:
\nSmall capital is an important as well as the specific advantage of a sole proprietorship. A sole proprietor can start a business with small capital.<\/p>\n
4. Credit Standing:
\nSince his private properties are held liable for satisfying business debts, he can get more financial assistance from others.<\/p>\n
5. Personal Contact with the Customers:
\nSince the sole proprietor knows each and every customer individually he can supply goods according to their taste and preferences. Thus he can cultivate a personal relationship with the customers.<\/p>\n
6. Flexibility:
\nThe sole trader can easily adjust himself to the changing requirements of his business.<\/p>\n
<\/p>\n
Question 3.
\nWhat are the disadvantages of the Sole trading business?
\nAnswer:
\n1. Limited Capital:
\nSince the capital is contributed by one individual only, business operations have necessarily to be on a limited scale.<\/p>\n
2. Limited Managerial Skill:
\nA single person\u2019s intelligence and experience may not help him beyond a certain stage. Since he has to focus on each and every activity, his managerial ability is bound to be limited.<\/p>\n
3. Unlimited Liability:
\nThe creditors have the right to recover their dues even from the personal property of the proprietor in case the business assets are not sufficient to pay their debts.<\/p>\n
4. Lack of Specialisation:
\nSince the business unit is small and the financial resources are limited, experts in different fields cannot be employed to secure maximum advantages.<\/p>\n
5. Hasty Decisions:
\nA sole proprietor is more likely to take hasty decisions as he need not consult anybody else.<\/p>\n
<\/p>\n
11th Commerce Guide Sole Proprietorship Additional Important Questions and Answers<\/h3>\n
Choose the correct Answer<\/span><\/p>\nQuestion 1.
\n…………….. is that form of business organisation which is owned and controlled by a single individual.
\n(a) Sole trading concern
\n(b) Partnership firm
\n(c) Joint Hindu family business
\n(d) Joint-stock companies
\nAnswer:
\n(a) Sole trading concern<\/p>\n
Question 2.
\nA business run by an individual is known as …………………. business.
\na. Sole Trader
\nb. Partnership
\nc. Company
\nd. Co-operatives
\nAnswer:
\na. Sole Trader<\/p>\n
<\/p>\n
Question 3.
\nWhen his business assets are not sufficient to pay off the business debts, he has to pay from his personal property.
\n(a) Unlimited Liability
\n(b) Flexibility
\n(c) Small capital
\n(d) Limited Liability
\nAnswer:
\n(a) Unlimited Liability<\/p>\n
II. Very Short Answer Questions<\/span><\/p>\nQuestion 1.
\nHow were the decisions taken in sole proprietorship?
\nAnswer:
\nSince an individual is himself as an owner, he need not consult anybody else. Hence he can make quick decisions.<\/p>\n
Question 2.
\nWhat is the motive of the business undertaking?
\nAnswer:
\nAll business undertakings which are directly or indirectly engaged in the transfer or exchange of goods are aimed at earning profit and they are exposed to various types of risks.<\/p>\n
<\/p>\n
Question 3.
\nWhat is limited managerial skill?
\nAnswer:
\nA single person\u2019s intelligence and experience may not help him beyond a certain stage. Since he has to focus on each and every activity, his managerial ability is bound to be limited.<\/p>\n
III. Short Answer Questions<\/span><\/p>\nQuestion 1.
\nDefine Sole Trader.
\nAnswer:
\nIn the words of J.L. Hansen, \u201c Sole trader is a type of business unit where a person is solely responsible for providing the capital, for bearing the risk of the enterprise and for the management of the business\u201d.<\/p>\n
<\/p>\n","protected":false},"excerpt":{"rendered":"
Tamilnadu State Board New Syllabus Samacheer Kalvi 11th Commerce Guide Pdf Chapter 4 Sole Proprietorship Text Book Back Questions and Answers, Notes. Tamilnadu Samacheer Kalvi 11th Commerce Solutions Chapter 4 Sole Proprietorship 11th Commerce Guide Sole Proprietorship Text Book Back Questions and Answers EXERCISE I. Choose the Correct Answer Question 1. Which is the oldest …<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"spay_email":""},"categories":[6],"tags":[],"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/samacheer-kalvi.com\/wp-json\/wp\/v2\/posts\/33006"}],"collection":[{"href":"https:\/\/samacheer-kalvi.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/samacheer-kalvi.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/samacheer-kalvi.com\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/samacheer-kalvi.com\/wp-json\/wp\/v2\/comments?post=33006"}],"version-history":[{"count":1,"href":"https:\/\/samacheer-kalvi.com\/wp-json\/wp\/v2\/posts\/33006\/revisions"}],"predecessor-version":[{"id":47660,"href":"https:\/\/samacheer-kalvi.com\/wp-json\/wp\/v2\/posts\/33006\/revisions\/47660"}],"wp:attachment":[{"href":"https:\/\/samacheer-kalvi.com\/wp-json\/wp\/v2\/media?parent=33006"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/samacheer-kalvi.com\/wp-json\/wp\/v2\/categories?post=33006"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/samacheer-kalvi.com\/wp-json\/wp\/v2\/tags?post=33006"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}