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Forms Of Business Organization
Question
Explain whether the liability of a sole proprietorship is limited to the extent of his share in business.
Solution
- The liability of a sole proprietorship is not limited to the extent of his share in business.
- The liability of sole proprietor is unlimited.
- The sole proprietor is personally liable for all business obligations. His own funds can be used if the business profits are insufficient to meet the losses of business.
Some More Questions From Forms of Business Organization Chapter
What do you understand by a Private Company?
What do you understand by a Public Company?
Under what circumstances, is a partnership form of business organisation suitable ?
Write a short note on 'implied agency', one of the important characteristics of partnership and also true test of partnership.
Would you say that the sole proprietorship involves a lengthy and expensive procedure for its registration?
Explain whether the liability of a sole proprietorship is limited to the extent of his share in business.
Only the Karta has unlimited liability in HUF. Explain.
Define 'Partner by Holding Out'.
Explain how the company is an artificial person.
Discuss whether a company's existence is affected by the death of a member.
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Mock Test Series
Mock Test Series