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Difficulty: MediumSole Proprietorship: Features, Capital Sources, Merits, and Demerits

Pair each aspect of a sole proprietorship business unit on the left with its corresponding operational description on the right.

  • Personal savingsPrimary internal capital source used to establish the enterprise
  • Autonomy in decision-makingOperational merit allowing swift action without consulting partners
  • Unlimited personal liabilityLegal risk where private property can be seized to satisfy unpaid business debts
  • Non-perpetual successionStructural demerit where business operations terminate upon the owner's death

Answer

Personal savings pairs with the primary internal capital source; Autonomy in decision-making pairs with the operational merit allowing swift action; Unlimited personal liability pairs with the legal risk of private property seizure for business debts; and Non-perpetual succession pairs with the structural demerit where operations terminate upon the owner's death.
Each concept of sole proprietorship corresponds strictly to its specific classification as a feature, capital source, merit, or demerit.

Step-by-Step Solution

1
Examine the capital, operational, legal, and structural concepts of sole proprietorship listed on the left.
Identified 'Personal savings' (capital source), 'Autonomy in decision-making' (merit), 'Unlimited personal liability' (legal risk/feature), and 'Non-perpetual succession' (demerit/feature).
Categorizing each concept according to sole proprietorship principles establishes the foundation for accurate matching.
2
Correlate each concept with its precise definition or business implication in the right column.
Matched personal savings to internal funding, decision autonomy to quick control, unlimited liability to personal asset risk, and non-perpetual succession to lack of business continuity.
Each concept directly leads to its paired operational outcome under Nigerian commercial law and general Commerce standards.

Key Concept

Features, Capital Sources, Merits, and Demerits of Sole Proprietorship
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Topics

Sole Proprietorship: Features, Capital Sources, Merits, and Demerits

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