Question

Statement I: The sole proprietorship is completely free to take decisions and to implement them.

Statement II: Sole proprietor doesn’t enjoy complete freedom of action.

Options

• Only I is correct.

• Only II is correct.

• Both I and II are correct.

• Both I and II are wrong.

Answer 1

Only I is correct.

Explanation:

The sole proprietorship is free to make decisions and implement them without consulting others, enabling quick, independent control. The proprietor enjoys complete freedom of action, as no legal formalities or interference hinder decision-making. Therefore, statement I is correct, and statement II is incorrect since the sole proprietor does enjoy complete freedom of action in decision-making and implementation.