Sole proprietorship Business


 

Meaning of sole proprietorship 

Sole proprietorship firm is a small capital business which is done by single person. In this Business only one owner is investing and manage whole the business activities. In this Business the owner manages the whole resources of Business and receive all income and profit and bear whole Liabilities of Business. 

 

features of sole proprietorship 

i single management: The owner manages whole the business activities. 

ii. Single owner: In this Business one owner Invest whole capital. 

iii .Unlimited liabilities: The owner liabilities are unlimited in the business that means if the owner cannot pay the Liabilities from business, then liabilities paid by owners domestic Assets. 

iv. No separate existence: In this Business, the owners and Business is not separate. 

v. Monopoly in profit: In this Business the owner receives whole the profit alone and bear whole the risk also. 

Vi. Business secrecy: These types of business only one owner is operated so, the business secrecy is safe. 

Minimum legal formalities: These types of Business are easy to start. For starting the owner have to do minimum legal formalities like license or copyright. 

 

Advantages sole proprietorship  

 

Easy to establish & close the business. 

Quality in management and control. 

fast decision in any subjects. 

Secrecy is available. 

Monopoly in profit. 

 

Disadvantages 

 

Unlimitied liabilities of owners. 

Uncertain life time of Business. 

Limited capital and human resources. 

Hight probability of Un qualitative decisions. 

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