Question

Explain the reasons for the popularity of sole proprietorship in pakistan

Answer 1

The most common and simplest form of business is a sole proprietorship. An individual proprietor owns and ...

Answer 2

Answer:

It's the easiest to form. Fewest legal hurdles and startup expenses, usually. Other forms of business entities require legal contracts to be drawn up.there are various reasons because of which it is common in Pakistan. Easy to form, Easy to dissolve, Minimum legal constraints Owner of all the profits earned, Personal Interest. That's Pakistan for you unlike United States.

Because rule of law is non existent. In a partnership if a partner screws the others there is no remedy. The courts would take hundreds of years to decide. So people are afraid of partnerships.