Sole proprietorship offers many advantages. Describe any three
Answers
Explanation:
1) Quick decision making
A sole propreitor enjoy considerable degree of freedom in making business decision.Further the decision making is prompt because there is no need to consult others. This may lead to timely capitalisation of market opportunities as when they arise.
2) Confidentiality of information
Sole decision making authority enables the propreitor to keep all the information related to business operation confidential and maintain secrecy.A sole trader is also not bound by law to publish firm's accounts.
3) Direct Incentive
A sole propreitor directly reaps the benefits of his/her efforts as he/ she is the sole recipient of all the profit.The need to share profits doesnotb arise as he/she is a single owner.This provides maximum incentive to the sole trader to work hard.