Sole proprietorship Flashcards
1
Q
Define Sole proprietorship
A
A business owned by one person
2
Q
Advantages of sole proprietorship
A
> Profits- All profits go to the business owner
Quick desicion making -Freedom in decision making making it quicker becuase the sole proprietor is on total control of operations
Costs- Startup costs are low compared to starting a company
3
Q
Disadvantages of sole proprietorships
A
> Discontinue-The business is terminated if the soole proprietor dies or retires
Debt- All debts and obligations arethe sole proprietors responsibility
Unlimited liability-The owners personal property can be used to pay off any debts becuase sole proprietors dont have seperate legal identities from their businesses
