Characteristics of sole proprietorship
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- Sole Ownership. A single person is an owner of this type of business. ...
- Unlimited Liability. ...
- Limited Work Area. ...
- Sole Right on Capital. ...
- Sole Management. ...
- No Legal Formalities. ...
- Free to Select his Business. ...
- Willful Commencement and Closure.
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Characteristics of Sole Proprietorship are:
- Single ownership: It is owned and controlled by one individual only.
- No profits sharing: In this form of business, profits doesn't get share since there's only one person as the owner of the firm.
- No separate entity: There's no difference between the owner of the firm and the business firm.
- Unlimited liability: The sole trader is responsible for all losses that happens to his business.
- No legal formalities: For closing or starting a business, no legal formalities are required. Sole trader can start and dissolve his business anytime he likes to.
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