Which of the following business enterprises does not have a separate legal entity?a)Sole Proprietorshipb)Partnershipc)Companyd)Cooperative SocietyCorrect answer is option 'A'. Can you explain this answer?

Question

Answer

Because the sole trader and the business are one person only. As the business is control and managed by one person and so the business has no separate identity.

Answer

(A) is the answer because a sole proprietorship is a type of business operated by one individual. the business is not considered a separate legal entity from its owner. its is profits and losses are included on the individual's personal tax return, and the owner has personal liability for business debts and lawsuits.

Answer

Explanation:

The correct answer is option 'A', Sole Proprietorship.

Sole Proprietorship:
A sole proprietorship is a type of business structure in which an individual, called a sole proprietor, owns and operates the business. In this form of business, there is no legal distinction between the owner and the business entity. The owner is personally responsible for all the debts and liabilities of the business. Therefore, a sole proprietorship does not have a separate legal entity.

Partnership:
A partnership is a form of business organization in which two or more individuals come together to carry on a business with a view to earning profits. In a partnership, the partners share the profits, losses, and management responsibilities of the business. While a partnership is not a separate legal entity, it does have some legal recognition as a distinct entity for certain purposes, such as taxation.

Company:
A company is a form of business organization that is created by law and is considered a separate legal entity from its owners. It can be owned by shareholders and managed by directors. The liability of the shareholders is limited to the amount of their investment in the company. Companies can be classified as private or public, depending on their ownership structure and whether their shares are listed on a stock exchange.

Cooperative Society:
A cooperative society is a voluntary association of individuals who come together to meet common economic, social, and cultural needs through a jointly owned and democratically controlled enterprise. It is a separate legal entity and is owned and controlled by its members. The members contribute to the capital of the cooperative and share in its profits and benefits.

Conclusion:
Out of the given options, a sole proprietorship is the only business enterprise that does not have a separate legal entity. In a sole proprietorship, the owner and the business are considered as one and the same, and the owner is personally responsible for all the obligations and liabilities of the business.

Answer

Yes option a and option b are both right because they have unlimited libelities

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'Sole proprietorship is a training school if business ,Explain Related: Sole Proprietorship - Forms of Business Organisation - Business Studies (BST), CBSE Class 11

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