Question

Mr.Ravi runs a small shop in a market.what merits will be there in this sole proprietorship form of organization?​

Answer 1

Answer:

Sole Proprietorship in simple words is a one-man business organization. It is the type of entity that is fully owned and managed by one natural person (not a legal person/entity) known as the sole proprietor. The business and the man are the same, it does not have a separate legal entity.

Merits of Sole Proprietorship:

1. Ease of Formation and Dissolution:

2. Direct Motivation:

3. Secrecy:

4. Flexibility in Management:

5. Low Costs of Management:

6. Credit Standing:

7. Minimum Govt. Regulation:

8. Social Significance:

Explanation:

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