PRC-3 · Chapter 2 · Question 11 of 61
Mr. Khan has decided to open a small bakery. He wants complete control over decision-making, minimal legal formalities, and is willing to accept all business risks personally. Which ownership structure is best for him?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Sole Proprietorship
Explanation
A sole proprietorship offers easy formation, total personal control, and entitlement to all profits, though it comes with unlimited personal liability.
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