Which form of organisation is usually most suitable for a very small business owned and managed by one person?
Correct answer: A. Sole proprietorship
- A. Sole proprietorship
- B. Public limited company
- C. Cooperative society
- D. Multinational corporation
Explanation
A sole proprietorship is simple to establish and allows one person to control management and receive the profits. A public company or large corporation normally involves greater legal and administrative requirements.
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About Nature and Forms of Business Organisation
Business organisation combines people, capital, materials and entrepreneurship to produce goods or services and earn profit, while also meeting customer and social needs. Coverage includes sole proprietorships, partnerships, companies and cooperatives, with comparisons of ownership, liability, control, profit sharing, continuity and legal status.
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