Sole Trader in India: Definition, Objectives & Formation


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question 1 of 3

In a sole trader business, what is meant by unlimited liability?

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1. Which of the following is NOT an advantage of a sole trader operation?

2. Which of the following would be an appropriate sole trader business?

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About This Quiz & Worksheet

See what you know about sole traders as a type of business in India. Answer questions to bring your understanding to light in key areas like an unlimited liability and the benefits of having a sole trader business.

Quiz & Worksheet Goals

You'll be quizzed on these important topics:

  • Sole trader business example
  • Limited capital as a shortcoming of a sole trader business
  • The ability to close down this type of operation

Skills Practiced

  • Reading comprehension - ensure that you draw the most important information from the related lesson on sole traders in India
  • Information recall - access the knowledge you've gained regarding unlimited liability
  • Distinguishing differences - compare and contrast topics from the lesson, such as the advantages of a sole trader business and one of its downfalls

Additional Learning

The lesson entitled Sole Trader in India: Definition, Objectives & Formation will teach you more along these study points:

  • Responsibilities associated with a sole trader business
  • Motives for people taking up this type of work
  • License/registration for sole traders
  • Different types of these operations