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Starting a sole proprietorship needs hardly any legal formalities because:
ANo separate law governs it
BThe state pays its fees
CIt needs no owner at all
DBanks arrange it free
Answer & Solution
Correct answer: A. No separate law governs it
1. A licence may be needed in some cases.
2. Closure is equally simple.
3. No separate law governs this form.
_Source: NCERT Class 11 Business Studies, Chapter 2, Forms of Business Organisation._
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