Sole Proprietorship Firm − It is the simplest form of business which is handled and managed by a single person. Requirement 1 To state : The operating activities and the form of organization for said business.
Sole Proprietorship Firm − It is the simplest form of business which is handled and managed by a single person. Requirement 1 To state : The operating activities and the form of organization for said business.
Solution Summary: The author explains that a Sole Proprietorship Firm is the simplest form of business which is handled and managed by one person.
Definition Definition Arrangement between two or more people whereby they agree to manage business operations and share its profits and losses in an agreed ratio. The agreement drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, and drawings of a partner.
Chapter 1, Problem 6BTN
Summary Introduction
Concept Introduction:
Sole Proprietorship Firm − It is the simplest form of business which is handled and managed by a single person.
Requirement 1
To state: The operating activities and the form of organization for said business.
Summary Introduction
Concept Introduction:
Business Organization: It can be described as an entity created to carry out various commercial activities with an intention of earning profits by providing goods and services based on the needs of the customer.
Requirement 2
To state: The reason behind choosing the form of organization by the owner.
Summary Introduction
Concept Introduction:
Forms of Organization: It depicts a specific code of conduct and rules to be followed in each type of business organization. Some of the forms of Business Organizations are- Sole Proprietary Firm, Joint Hindu Family Firm, Partnership Firm, LLP etc.
Requirement 3
To state: The advantages and disadvantages of the form of organization for said business.