Question

Sole properietorship firm
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Answer 1

Answer:

Sole proprietorship is an individual who has the unlimited liability since he is the only one who has to contribute to his business and he is the ultimate one who enjoys the profits earned by him

The sole proprietorship has many disadvantages such as follows

1)lack of resources

2)lack of management ability

3)unlimited liability

4)no other hand for contributing the capital

Despite these disadvantages the sole proprietorship has its own advantages

1) maintenance of secrecy

2)enjoys one the whole profits

3)easy to form

4)easy to dissolve

5)no furnishing of its statements like financial reporting

6)no laws to be followed

Explanation: