Despite limitations of size and resources, many people continue to prefer sole
proprietorship over other forms of organization. Why?
Answers
Yes, despite limitations of size and resources many people continue to prefer sole proprietorship over other forms organisation because of following,merits of this form of organisation. Any person can start this form of organisation by investing a small amount of capital and can dissolve it as per his will.
Answer:
write various merits of sole proprietorship
Step-by-step explanation:
MERITS OF SOLE PROPRIETORSHIP:
1. Sole benefits:
A sole trader enjoys all the profits generated by his business.
2. Minimal legal formalities:
There are minimal legal formalities required when forming the business. What is mostly required is a trading license which is offered at a small fee.
3. Secrecy:
A sole trader enjoys the top secrets of his business. These are normally the secrets that make his business successful and no one else can know it.
4. Personal contact:
It is easier for a sole trader to maintain closeness with his customers and employees. This is because employees and customers are few in number, hence, he is able to know them individually consequently attending to their problems.
5. Freedom of action:
A sole trade does not need to consult anyone when making decisions. This is so because he is the only and final decision maker. Decisions can be made quickly.
6. It is flexible:
Changes can be made within a short period and time.