Explain sole proprietorship with its merits and demerits.
Answers
sole proprietorship is a form of business organisation in which a single individual introduces his own capital skills and intelligence in the management of its effect and is solely responsible for the results of its operations the individual may run the business on his own or may obtain the assistance of employees it is the first stage the evolution of the forms of organisation and is thus the oldest among them.
the following are the merits of sole proprietorship :
easy to form and wind up
quick decision and prompt action
direct motivation
flexibility in operation
maintenance of business secrets
personal touch
the following are the demerits of sole proprietorship :
limited resources
lack of continuity
unlimited liability
not suitable for large scale operations
Limited managerial expertise
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Answer:
Sole Proprietorship form of Business: Features, Advantages and Disadvantages! Proprietorship (also called sole trade organisation) is the oldest form of business ownership in India. Sole proprietorship is the simplest and easiest to form. It does not require legal recognition and attendant formalities.