Asked by Julia Holsten on May 05, 2024
Verified
What are the advantages and disadvantages of a sole proprietorship form of business.?
Sole Proprietorship
A type of business enterprise owned and managed by one person, where there is no legal distinction between the owner and the business.
Advantages
Benefits or positive aspects of a particular situation, strategy, or choice.
Disadvantages
The unfavorable or negative aspects of a particular situation or choice.
- Differentiate among distinct business structures in terms of their establishment, functioning, and disbandment.
Verified Answer
ZK
Zybrea KnightMay 07, 2024
Final Answer :
The advantages are that (1) creation is easy, (2) the proprietor is in total control of management, and (3) the proprietor keeps all the profits. Disadvantages are (1) personal liability of the owner for all losses, and (2) funding is limited to personal funds and loans.
Learning Objectives
- Differentiate among distinct business structures in terms of their establishment, functioning, and disbandment.
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