Question

................ is easy in formation.

• A. Sole trading
• B. Partnership firm
• C. Joint stock company
• D. None of these

Hint:

If a business is small and requires quick start, sole proprietorship is the best choice.

Answer 1

The Correct Option is A

Step 1: Understanding sole trading.
A sole proprietorship is the simplest form of business owned and managed by one individual.
It does not require complex legal formalities to establish.
Step 2: Why it is easy in formation.
- No need for large capital.
- Very few legal restrictions.
- Can be started with a small investment in a short time.
For example, opening a small retail shop is a sole trading activity.
Step 3: Option analysis.
- (A) Sole trading: Correct, easiest form to establish.
- (B) Partnership firm: Requires agreement and registration, not as simple.
- (C) Joint stock company: Complex process, requires incorporation.
- (D) None of these: Incorrect, since (A) is right.
Step 4: Conclusion.
Sole trading is the easiest form of business to establish.