Profits do not have to be shared. This statement refers toa)Companyb)Joint Hindu family businessc)Partnershipd)Sole proprietorshipCorrect answer is option 'D'. Can you explain this answer?

Question

Answer

Sole proprietorship refers to a form of organization where business is owned, managed and controlled by a single individual who bears all the risks and is the only recipient of all the profits.

Answer

Coz in option d he is alone

Answer

Sole proprietorship is the form of organisation in which as an individual invests his entire capital and skills solely responsible for the results of the business..... he alone controls and manages the business and bears it profit and lossses.......therefore profits of the soletrader is not have to be shared.....

Answer

Bcoz as sole proprietor means single owner therefore profit not distributed one sole means single person take profit

Answer

D)sole proprietor

Answer

Ans: Option 'D' is correct because ----
A BUSINESS that legally has no SEPARATE existence from its OWNER. ..is called as SOLE-PROPRIETORSHIP .
The SOLE PROPRIETORSHIP is the simplest BUSINESS form under which A PERSON can own and operate a business alone.
In short Sole Proprietor simply refers to a person who owns the business and is personally responsible for its Debts/Creditors..
And as a fact profits are not to be shared too !!

Answer

Explanation:

In a sole proprietorship, the business is owned and operated by a single individual. The owner has complete control over the business and is solely responsible for its profits and losses. Therefore, profits do not have to be shared with anyone else in a sole proprietorship.

Key Points:
- Sole Proprietorship: In a sole proprietorship, the business is owned and operated by a single individual.
- Ownership and Control: The owner has complete control over the business.
- Profits and Losses: The owner is solely responsible for the profits and losses of the business.
- No Sharing of Profits: Since the owner has exclusive ownership, there are no partners or shareholders to share the profits with.
- Decision-making: The owner has the authority to make all business decisions without any input or agreement from others.
- Liabilities: The owner is personally liable for all debts and obligations of the business.
- Taxation: The profits of a sole proprietorship are treated as personal income for the owner and are subject to individual income tax rates.

Conclusion:
In a sole proprietorship, the owner has complete control over the business and is solely responsible for its profits and losses. Since there are no partners or shareholders, the profits do not have to be shared with anyone else. However, the owner is also personally liable for all debts and obligations of the business.

Answer

Ohhh it's sole proprietorship bcoz there is a only single proprietor

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Yup.. Sole proprietorship is the right answer as sole itself means single and proprietor means owner.  Sole proprietor is who owns, manages and controls the business at his own risk.

Answer

D is the correct answer because there is only single owner exists and profits are not shared

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