What is the advantage of sole proprietorship
a. Small capital
b. Hasty decision
c. Limited capital
d. Limited managerial ability
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The correct answer is A. Small Capital.
Few main features of this type of an organisation are:
••• Sole proprietorship is the simplest and most flexible business structure.
••• The sole proprietor has total control and full decision-making power over policies, profits and capital investment.
••• It is easy to close down the business.
••• Profits from the business will be taxed at the sole proprietor's marginal tax rate, which may be lower than the corporate tax rate.
Few main features of this type of an organisation are:
••• Sole proprietorship is the simplest and most flexible business structure.
••• The sole proprietor has total control and full decision-making power over policies, profits and capital investment.
••• It is easy to close down the business.
••• Profits from the business will be taxed at the sole proprietor's marginal tax rate, which may be lower than the corporate tax rate.
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