Trusted by millions of Kenyans
LoginRegister
Study resources on Kenyaplex

Get ready-made curriculum aligned revision materials

Exam papers, notes, holiday assignments and topical questions – all aligned to the Kenyan curriculum.

Browse exam papers
Or go directly to:
Class notes Holiday assignments Topical questions Other resources

Define the term dissolution and give circumstances under which a sole proprietorship may be dissolved.

Define the term dissolution and give circumstances under which a sole proprietorship may be dissolved.

Answers

joseph
Dissolution of sole proprietorships

Dissolution refers to the termination of the legal life of a business.

The following circumstances may lead to the dissolution of a sole proprietorship:
a)Death or insanity of the owner.
b)Transfer of the business to another person- this transfers the rights and obligations of the business to the new owner.
c)Bankruptcy of the owner- this means that the owner lacks the financial capability to run the business.
d)The owner voluntarily decides to dissolve the business e.g due to continued loss making.
f)Passing of a law which renders the activities of the business illegal.
g)The expiry of the period during which the business was meant to operate
joseph rimiru answered the question on November 24, 2017 at 18:30

Answer Attachments

Next:  What is a sole proprietorship?

Previous: Bainisha matumizi ya’ku’ katika sentensi hii. Kufaulu kwako kutakuletea heshima ikiwa hukudanganya katika mtihani huo.

View more Business Studies Questions and Answers  |  Return to Questions Index

Exams With Marking Schemes

Related Questions