what are the advantages of sole proprietorship
Answers
i)quick decision making:- in business timely decision is taking the chance of earning more profit.
ii)sense of accomplishment:- personal satisfaction is involved in working for oneself.
iii)ease to form and close:- owner can easily form and close his business at any time. there are no any government law.
iv)confidentiality:- owner will not share his secrets with others. there is no one to show books of accounts infront of public.
v)direct incentive:-owner is alwyas motivated to work extra to get extra profit. if owner puts extra efforts then profit will also increase.
Answer:
Easy formation
No legal formalities are required to initiate sole trading concern
Incentive to work hard
there is a direct relationship between effort and reward.That fact is that the entire profit can be taken by himself.induces him to work carelessly
small capital
small capital is important as well as a specific advantage of sole trading concern.A sole trading concern can start the business with small capital
credit standing
since the private property of the proprietor are held liable.He can get more financial assistance from others
personal contact with the consumer
since sole proprietor knows each and every consumer individually .He can supply goods according to their taste and preference
flexibility
the sole trader can easily adjust himself to the changing in the requirement of the business