On the basis of the given text, answer the following questions : (a) Identify the forms of business organisation highlighted above. (b) State any four features of each form of business organisation identified in (a) above.

Question

Accepted Answer

(a) The forms of business organisation highlighted are:
- **Sole Proprietorship** (when Raghav started the small café and personally managed everything)
- **Partnership** (when Vikas suggested partnering to share capital and managerial responsibilities)

(b) Four features of **Sole Proprietorship**:
(i) **Individual ownership** — the business is exclusively owned by a single person (Raghav alone).
(ii) **Individual management and control** — all affairs are managed and controlled by the sole proprietor (Raghav personally managed the menu, finances and customer orders).
(iii) **Unlimited liability** — the proprietor is responsible for all losses; personal property can be used to pay business debts.
(iv) **Limited area of operation** — generally limited due to limited finance availability and managerial abilities.

Four features of **Partnership**:
(i) **Two or more persons** — at least two persons are needed to form a partnership.
(ii) **Agreement** — the relation of partnership arises from contract, not from status.
(iii) **Profit sharing** — the objective is to make and distribute profits among partners.
(iv) **Unlimited liability** — the liability of partners is unlimited; personal properties can be used for the firm's debts.