Students can find the most related topics which helps them to analyse the concepts if they practice according to the chapter-wise page. It is necessary for the students to practice more Questions and Answers for Tamilnadu State Board Solutions of 11th Commerce are given in the pdf format in chapter 4 Sole Proprietorship Questions and Answers so that students can prepare in both online and offline modes. So, Download Samacheer Kalvi 11th Commerce Book Solutions Questions and Answers, Notes Pdf, to score good marks.
Samacheer Kalvi 11th Commerce Solutions Chapter 4 Sole Proprietorship
Get the Questions and Answers, in Tamilnadu State Board 11th Commerce Solutions for Chapter 4 Sole Proprietorship. Learn the concepts of 11th Commerce Chapter-Wise by referring to the Tamilnadu State Board Solutions for Chapter 4 Sole Proprietorship Questions and Answers. Hence we suggest the students to Download Samacheer Kalvi 11th Commerce Book Solutions Questions and Answers pdf to enhance your knowledge.
Samacheer Kalvi 11th Commerce Sole Proprietorship Textbook Exercise Questions and Answers
I. Choose the Correct Answer
11th Commerce 4th Lesson Questions And Answers Question 1.
Which is the oldest form of Business organisation?
(a) Sole Proprietorship
(b) Partnership
(c) Co – operative Society
(d) Company
Answer:
(a) Sole Proprietorship
Sole Proprietorship Questions And Answers Question 2.
In which form the owner, establisher and manager is only one?
(a) Joint Enterprise
(b) Government Company
(c) Co – operative Society
(d) Sole Proprietor
Answer:
(d) Sole Proprietor
Samacheer Kalvi Commerce 11th Question 3.
A major disadvantage of sole proprietorship is
(a) Limited liability
(b) Unlimited liability
(c) Easy Formation
(d) Quick decision
Answer:
(b) Unlimited liability
11th Commerce Solutions Samacheer Kalvi Question 4.
From the following which one is Non – corporate form of business?
(a) Joint stock company
(b) Sole trading business
(c) Government company
(d) Co – operatives
Answer:
(b) Sole trading business
II. Very Short Answer Questions
11th Commerce Samacheer Kalvi Question 1.
Who is called Sole Trader?
Answer:
Proprietorship is a form of business organisation in which an individual introduces his own capital, uses his own skill and intelligence in the management of its affairs and is solely responsible for the results of its operations.
Sole Proprietorship Questions And Answers Pdf Question 2.
What are the non – corporate enterprises?
Answer:
- Sole trading concern
- partnership firm
- Joint Hindu family business.
11th Commerce Chapter 4 Book Back Answers Question 3.
What are the corporate enterprises?
Answer:
- Government – Public Undertakings, Public Utilities.
- Private – Joint stock companies
- Co – operative society
Samacheer Kalvi 11th Commerce Question 4.
For which of the following types of business do you think a sole proprietorship form of organisation would be more suitable, and why?
- Grocery store
- Medical store
- Craft centre
- Legal consultancy
- Internet cafe
Answer:
Grocery store is more suitable for sole proprietorship business because of limited risk and less educated or uneducated can start the business.
III. Short Answer Questions
Commerce Samacheer Kalvi Question 1.
How is it possible to maintain secrecy in sole proprietorship?
Answer:
In sole proprietorship as the trader is the sole owner of the business, the secrecy can be maintained easily.
Samacheer Kalvi Guru 11th Commerce Question 2.
What is unlimited liability?
Answer:
The liability of the proprietor for the debts of the business is unlimited. The creditors have the right to recover their dues even from the personal property of the proprietor in case the business assets are not sufficient to pay their debts.
11th Samacheer Kalvi Commerce Question 3.
Write any three characteristics of sole proprietorship.
Answer:
1. Ownership by one man:
This is owned by single person. The sole trader contributes the required capital. He is not only the owner of the business but also manages the entire affairs.
2. Freedom of work and Quick Decisions: Since.an individual is himself as a owner, he need not consult anybody else. Hence he can take quick decisions.
3. Unlimited Liability: When his business assets are not sufficient to pay off the business debts he has to pay from his personal property.
Samacheer Kalvi Class 11 Commerce Solutions Question 4.
Give some examples of sole trading business.
Answer:
Saravana Stores, Hotel Saravana Bhavan, Grocery store, Petty shop.
Samacheer Kalvi 11th Commerce Solutions Question 5.
Define Sole trading business.
Answer:
“Sole proprietorship is that form of business organisation which is owned and controlled by a single individual. He receives all the profits and risks of his property in the success or failure of the enterprise” – Wheeler.
IV. Long Answer Questions
Samacheer Kalvi 11th Accountancy Chapter 4 Question 1.
Explain the characteristics of sole trading business.
Answer:
1. Ownership by one man:
This is owned by single person. The sole trader contributes the required capital. He is not only the owner of the business but also manages the entire affairs.
2. Freedom of work and Quick Decisions:
Since an individual is himself as a owner, he need not consult anybody else. Hence he can take quick decisions.
3. Unlimited Liability:
When his business assets are not sufficient to pay off the business debts he has to pay from his personal property.
4. Enjoying Entire Profit:
He strives tirelessly for the improvement and expansion of his business and enjoys all the benefits of his hard work.
5. Absence of Government Regulation:
A sole proprietor concern is free from Government regulations. No legal formalities are to be observed in its formation, management or in its closure.
6. No Separate Entity:
The sole trading concern comes to an end with death, disability, insanity and insolvency of the individual.
7. Maintenance of Secrecy:
Since he/she manages all the affairs of the business, the secrecy can be maintained easily.
Samacheer Kalvi Commerce Question 2.
What are the advantages of sole trading business?
Answer:
1. Easy Formation:
No legal formalities are required to initiate a sole trading concern. Any person capable of entering into a contract can start it, provided he has the necessary resources for it.
2. Incentive to Work hard:
There is a direct relationship between effort and reward. The fact that the entire profit can be taken by himself without sharing with anybody else induces him to work ceaselessly.
3. Small Capital:
Small capital is an important as well as specific advantage of sole proprietorship. Sole proprietor can start business with small capital.
4. Credit Standing:
Since his private properties are held liable for satisfying business debts, he can get more financial assistance from others.
5. Personal Contact with the Customers:
Since sole proprietor knows each and every customer individually he can supply goods according to their taste and preferences. Thus he can cultivate personal relationship with the customers.
6. Flexibility:
The sole trader can easily adjust himself to the changing requirements of his business.
Samacheer Kalvi 11 Commerce Question 3.
What are the disadvantages of sole trading business?
Answer:
1. Limited Capital:
Since the capital is contributed by one individual only, business operations have necessarily to be on a limited scale.
2. Limited Managerial Skill:
Single person’s intelligence and experience may not help him beyond a certain stage. Since he has to focus on each and every activity, his managerial ability is bound to be limited.
3. Unlimited Liability:
The creditors have the right to recover their dues even from the personal property of the proprietor in case the business assets are not sufficient to pay their debts.
4. Lack of Specialisation:
Since the business unit is small and the financial resources are limited, experts in different fields cannot be employed to secure maximum advantages.
5. Hasty Decisions:
Sole proprietor is more likely to take hasty decision as he need not consult anybody else.
Samacheer Kalvi 11th Commerce Sole Proprietorship Additional Questions and Answers
I. Choose the Correct Answer:
Question 1.
…………….. is that form of business organisation which is owned and controlled by a single individual.
(a) Sole trading concern
(b) Partnership firm
(c) Joint Hindu family business
(d) Joint stock companies
Answer:
(a) Sole trading concern
Question 2.
…………….. is known as individual entrepreneurship.
(a) Partnership
(b) Sole trader
(c) Joint stock company
(d) Co – operative
Answer:
(b) Sole trader
Question 3.
When his business assets are not sufficient to pay off the business debts, he has to pay from his personal property.
(a) Unlimited Liability
(b) Flexibility
(c) Small capital
(d) Limited Liability
Answer:
(a) Unlimited Liability
Question 4.
“He receives all the profits and risks all of his property in the success or failure of the enterprise”- was said by
(a) Wheeler
(b) J.L. Hansen
(c) H.Haney
(d) O.R. Krishnasamy
Answer:
(a) Wheeler
Question 5.
Which of the following is under non – corporate enterprise?
(a) Government
(b) Co – operative
(c) Company
(d) Sole trading concern
Answer:
(d) Sole trading concern
II. Very Short Answer Questions
Question 1.
How was the decisions taken in sole proprietorship?
Answer:
Since an individual is himself as a owner, he need not consult anybody else. Hence he can take quick decisions.
Question 2.
What should be the Government role in sole proprietorship?
Answer:
A sole proprietor concern is free from Government regulations. No legal formalities are to be observed in its formation, management or in its closure.
III. Short Answer Questions
Question 1.
What is limited capital?
Answer:
Since the capital is contributed by one individual only, business operations have necessarily to be on a limited scale.
Question 2.
What is limited managerial skill?
Answer:
Single person’s intelligence and experience may not help him beyond a certain stage. Since he has to focus on each and every activity, his managerial ability is bound to be limited.
For future Learning
Question a.
Mahesh is a young graduate who has inherited a sum of Rs 1,00,000 by way of family savings. He also has a family house to which he has sole title as the only son of his father. He is thinking of starting a small factory for the manufacture of plastic toys. What form of ownership organisation will you advise him to choose?
Answer:
Sole Trader.
Question b.
Amar started a business on his own. He has his father helping him with the accounts and his brother helps him with looking after customers in the evening. Amar pays a monthly salary to his father and brother. Identify the form of business organisation.
Answer:
Sole Trader.
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