SOLE PROPRIETORSHIP

Question 1

Who GOVERN the sole proprietorsip?

Answer 1

REGISTRATION OF BUSINESS ACTS, 1956

Question 2

Nature of sole proprietor?

(4 answer)

Answer 2

1) The business is owned by one person

2) It has no separate legal entity

3) The business is the businessman

4) Has the minimal legal requirements

Question 3

Advantages of sole proprietor?

Answer 3

1. You’re your own boss
2. Can be started fairly easily with minimal capital requirement
3. Owner receive all the profits
4. No public disclosure of accounts is required

Question 4

Disadvantages of sole proprietor?

Answer 4

1. Bear the unlimited liability for any losses incurred by the business
2. Expertise is limited
3. Fund may be inadequate
4. Firm will cease once the owner dies

Question 5

Disadvantages of sole proprietor?

Answer 5

1. Bear the unlimited liability for any losses incurred by the business
2. Expertise is limited
3. Fund may be inadequate
4. Firm will cease once the owner dies