Match each feature, capital source, merit, or demerit of a sole proprietorship listed on the left with its correct description or classification on the right.
- Unlimited LiabilityThe owner's personal assets can be seized to satisfy business debts if enterprise assets are insufficient.
- Retained EarningsAn internal source of expansion capital obtained by ploughing back previous trading profits.
- Quick Decision-MakingAn operational advantage resulting from sole management without needing consultation with partners.
- Lack of ContinuityA structural weakness where the business enterprise commonly dissolves upon the death or insanity of the owner.
Answer
Unlimited Liability matches with the feature where personal assets can be seized for debts. Retained Earnings matches with the internal capital source obtained from ploughed-back profits. Quick Decision-Making matches with the operational merit of acting without consultation. Lack of Continuity matches with the structural weakness where the business usually ends upon the death of the owner.
Each item accurately corresponds to its core definition within sole proprietorship concepts: Unlimited Liability attaches personal property to debts; Retained Earnings serves as ploughed-back internal capital; Quick Decision-Making is a prompt administrative advantage; and Lack of Continuity reflects the absence of perpetual succession.
Step-by-Step Solution
Key Concept
Sole Proprietorship Features, Merits, Demerits, and Capital Sources