When is sole proprietorship firm is suitable as a business?
Answers
Explanation:
This structure would be appropriate for businesses in its initial stage and for those having less capital requirements, lower risk and small team of employees. Here is the list of businesses most suitable as proprietorship firm based on features of the organisation: Less Capital requirements. Lower Tax rates.....
Answer:
The business owner of a sole proprietorship represents the company in totality. Also, the business owner in a sole proprietorship business is usually self-employed rather than the company’s employee. Sole proprietorship business practices are popular in many professions, including direct marketing consultants, attorneys, contractors and accountants. Many sole proprietors maintain either home offices or small leased office space.
Many sole proprietorship businesses have very low start-up costs as compared with other types of business structures. The start-up investment typically includes the basic costs for equipment, marketing and office utilities. However, the amount of the start-up costs may vary, depending on the specific type of business. Essentially, a sole proprietor business legally comes into existence when the business owner registers the business name and obtains any relevant business licenses. Depending on the type of business and its location, the business owner may be required to obtain federal, state and local business licenses and permits
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