Question 12
Business OrganisationsOne important feature of sole proprietorship is that
- A.it is limited liability business
- B.the business is owned by shareholders
- C.one person bears all the risks
- D.it is a legal entity.
Show the answer and explanation
Answer: C (one person bears all the risks)
Explanation
A sole proprietor owns the business alone, takes all the profit and bears all the risk with unlimited liability.