Question

is it important for a sole proprietor to maintain reserve ?​

Answer 1

Answer:

One of the functional advantages of sole proprietorships is that they are easier to set up than other business entities. A person becomes a sole proprietor simply by running a business. Another functional advantage of a sole proprietorship is that the owner maintains 100% control and ownership of the business.

Answer 2

No it is wish of the sole proprietor if hw wants to create a reserve. He will create a reserve only when there are sufficient profits.