Maharashtra State BoardHSC Commerce 12th Board Exam
Advertisement Remove all ads

Write Short Notes on the Following. Features of a Proprietorship - Organisation of Commerce and Management

Short Note

Write short notes on the following.
Features of a proprietorship

Advertisement Remove all ads


Features of a proprietorship:
i. Easy formation and closure: This form of organisation requires minimum legal formalities while forming and closing down
the business.
ii. Unlimited liability: A sole proprietor has unlimited liability; this implies that the personal assets of the proprietor can be
utilised in case the business assets fall short of debt obligations.

iii. Direct incentives: As the sole proprietor enjoys all the profits and bears all the risks and losses associated with the
business, he/she gets direct incentives while running the business.
iv. Single ownership: It is managed and controlled single-handedly by the proprietor only.
v. Secrecy of information: In a proprietorship firm, all the decisions are taken by the proprietor; therefore, he/she retains
maximum business-related secrecy.
vi. Minimum government regulations: As a sole proprietorship firm is not governed by any laws and acts, there is minimum
government interference in its operations.

  Is there an error in this question or solution?
Advertisement Remove all ads


Micheal Vaz Organisation of Commerce and Management (OCM) HSC 12th Standard Maharashtra State Board
Chapter 1 Forms of Business Organisations
Write short notes on the following | Q 1 | Page 38
Advertisement Remove all ads
Advertisement Remove all ads

View all notifications

      Forgot password?
View in app×