JAMB Economics 1978 Question 41

Question 41

Business Organisations

The advantage of the sole proprietorship is as follows:

  1. A.it is always successful
  2. B.continuity is no problem
  3. C.control and supervision is under one man
  4. D.funds are easy to obtain
  5. E.inter-generational equity is assured.
Show the answer and explanation

Answer: C (control and supervision is under one man)

Explanation

A sole trader controls and supervises the business personally, allowing quick decisions; the other options are not true of sole proprietorships.