Sole-proprietorship - Jamb Economics Past Questions and Answers

Question 6:

• JAMB 1987

The liability of the sole trader is?

A. Indeterminable
B. Unlimited
C. Transferable
D. Limited

Question 7:

• JAMB 1992

The main handicap of sole proprietorship is?

A. Limited liability
B. Lack of technical know-how
C. Low profit margin
D. Inadequate capital

Question 8:

• JAMB 1994

A major shortcoming of the sole proprietorship form of business is lack of?

A. Working capital
B. Patronage
C. Continuity
D. Market

Question 9:

• JAMB 2001

The losses suffered by a sole proprietor are?

A. Usually equal to the amount invested
B. Usually less than the amount invested
C. Limted to the amount invested
D. Not limited to the amount invested

Question 10:

• JAMB 2003

An advantage of the sole proprietorship over the partnership from of business organisation is that

A. Its existence is limited by an individual's life span
B. It relies on the decision of friends to succeed
C. The possibility of conflict in management is virtually non-existent
D. It enjoys limited liability for debt in the event of failure