Asked by Pallavi Kumar on May 14, 2024
Verified
List the advantages and disadvantages of the sole proprietorship form of business organization.
Sole Proprietorship
A business owned and operated by a single individual, with no distinction between the business and the owner in terms of legal and financial affairs.
Advantages
The positive aspects or benefits that contribute to achieving success or gaining a competitive edge.
Disadvantages
Disadvantages refer to the negative aspects or conditions that reduce effectiveness, efficiency, or desirability of something or someone.
- Comprehend the fundamental principles and distinctions between different organizational forms such as sole proprietorship, partnership, limited partnership, corporation, and LLC.
- Understand the implications of liability for owners and investors across various business entities.
Verified Answer
AA
Anhal AlzubaidiMay 17, 2024
Final Answer :
The advantages of a sole proprietorship are a)creation is easy,b)the proprietor is in total control of management,and c)the proprietor keeps all the profits.The disadvantages of a sole proprietorship are a)personal liability of the owner for all losses and b)funding is limited to personal funds and loans.
Learning Objectives
- Comprehend the fundamental principles and distinctions between different organizational forms such as sole proprietorship, partnership, limited partnership, corporation, and LLC.
- Understand the implications of liability for owners and investors across various business entities.