Page 4 - Lesson Note 3

(b)Same entity

(c) Part of govt.

(d) None of the above.

4. Sole trader business is suitable for:

(a) Small business

(b) Medium scale business

(c) Large scale business

(b) None of the above

5. Sole trader business is suitable when:

(a) Market is large

(b) Market is local

(c) Market is limited

(d) None of the above

ASSIGNMENT__________

VERY SHORT ANSWERS._______1 MARK EACH

1. How many persons can start a sole proprietary business?
2. Who bear all the risk in sole proprietary business?
3. Does a sole trader business have separate legal entity from his business?

(3---4) MARK QUESTIONS_____

1. Under what circumstances sole-trade business is suitable.
2. State any four benefits for starting a sole trade business.
3. In which form of business profits are not shared? Why

(5—6) mark answers.______

1.Define sole –proprietorship and state its characteristics.

2. State the various problems faced by sole—proprietary business.