Question

‘Profits do not need to be share’. This statement refers to ______.

Options

• Sole Proprietorship

• Partnership

• Joint Hindu Family

Answer 1

‘Profits do not need to be share’. This statement refers to sole proprietorship.

Explanation:

“Profits do not need to be shared” means that a business is a sole proprietorship because:

• There is only one owner of this kind of business.
• The business owner keeps all the money made and all the money lost.
• There is no way for anyone else to share in the wealth.