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Death, insanity or bankruptcy of the owner may close the firm, showing sole proprietorship suffers from:
ALack of continuity
BExcess of capital
CToo many owners
DStrict regulation
Answer & Solution
Correct answer: A. Lack of continuity
1. One person owns and controls everything.
2. The business depends on that person.
3. So business continuity is lacking.
_Source: NCERT Class 11 Business Studies, Chapter 2, Forms of Business Organisation._
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