Question

What is the meaning of sole Proprietorship in business? Why is it an important factor in business?

Class-11

Answer 1

Answer:

A sole proprietorship also referred to as a sole trader or a proprietorship, is an unincorporated business that has just one owner who pays personal income tax on profits earned from the business. ... Many sole proprietors do business under their own names because creating a separate business or trade name isn't necessary

Explanation:

While there are many factors that come into play when building a business, I believe that the most important ones have nothing to do with innovation, balance sheets, finance or marketing. The most important over arching variable to your success in business is you.

Answer 2

A sole proprietorship is a form of business that is owned and controlled by a single person. Many small businesses usually follow this form of business as it is easier to set up.

It is an important factor in business as it is usually considered advantageous. It is easier to form and control. The owner can be quick in decision-making since he's the only one managing the business. There will also be confidentiality in information relating to his business, if ever it is required. The owner has complete control over the business. However, in this form of business, the owner becomes the sole risk bearer in case of any liabilities or risks as he's the only one in the organization. There may also be no business continuity in case of any accidents/d‎eath of the owner since he has no one to p‎as‎s the business over to.