NABTEB Economics 2013 Theory — Question 9
Question 9 of 18 from the National Business and Technical Examinations Board (NABTEB) Economics 2013 Theory paper, with the correct answer and a full explanation.
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Essay Question 5(b). List four features of a sole proprietorship.
Model answer
(i) It is owned, financed and managed by one individual. (ii) There is unlimited liability. (iii) It is not a legal entity separate from the owner. (iv) There is no continuity or perpetual existence. (v) There is an absence of conflict in management. (vi) It requires small capital and is easy to set up.
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