"SOLE PROPRIETORSHIP"

– By MaddaliSwetha

It is defined as the simplest, oldest, and most common form of business ownership in which only one individual acquires all the benefits and risks of running an enterprise.

 In a sole-proprietorship there is no legal distinction between the assets and liabilities of a business and those of its owner.

Sole proprietorship is also known as "proprietorship" also known as the sole trader, is a type of business entity that is owned and run by one individual.

Many sole proprietors do business under their own names because creating a separate business or trade name isn't necessary.

ADVANTAGES:

1. It is easy to organize.

2. Only small amounts of capital are needed to start and run a business.

3. Unlimited liability.

4. The owner receives all the profit of the business.

5. No risk of fraud by a partner.

6. It is easier if you are a good leader.

7. You are the boss.

8. Quick decision making.

DISADVANTAGES:

1. Unlimited liability for business debts. The single owner is responsible for paying all debts and damages of their business.

2. If owner dies his/her business is close down or taken by other new person.

3. Must accept all liabilities of the business.

4. Bear risk alone.