Rajiv is the sole owner of a shirt manufacturing factory. He took loan of Rs. 30 lac from Jain finance company for expansion of his business. In beginning business was running well but later on he started facing losses and due to continuous losses he was not able to repay the loan. After receiving many reminders from finance company, Rajiv planned to close the business. He sold all his machines and other assets and collected Rs. 20 lac. The finance company refused and plan to file a case against him in court. In court, Mr. Rajiv gave the argument that he has sold all his business assets and loan was taken by him for business and not for personal use. So finance company must settle the account by taking Rs. 20 lac. The court did not agree with the argument of Rajiv and gave the decision in favour of finance company and order Rajiv to pay full loan amount by selling his personal asset.
(a) Name the form of business carried by Rajiv?
(b) State the feature of sole Proprietorship which is kept in mind by court while taking decision.
( c ) Is Rajiv's argument of saying he and business are separate entity is correct.

Explanation

(a) Sole Proprietorship.
(b) Unlimited Liability.
( c ) No, as sole proprietor does not enjoy separate legal entity.