Commercial Applications
Which of the following options regarding Proprietorship is wrong?
- Basis of formation : No agreement
- Number of members : No maximum limit
- Management : By the Sole Proprietor
- Application of Law : The Contract Act
Sole Proprietorship
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Answer
Number of members : No maximum limit
Reason — In a sole proprietorship, the number of members is only one. There is no question of a maximum limit because the business is owned and managed by a single individual. The other options are correct — no agreement is required, management is by the sole proprietor, and it is governed by the Contract Act.
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