Write in brief merits and demerits of sole proprietorship
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Sole proprietorships have several advantages over other business entities. They are easy to form, and the owners enjoy sole control of the business profits. However, they also have disadvantages, the biggest of which being that the owner is personally liable for all business losses and liabilities.
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Sole proprietorships have several advantages over other business entities. They are easy to form, and the owners enjoy sole control of the business profits. However, they also have disadvantages, the biggest of which being that the owner is personally liable for all business losses and liabilities.
The Disadvantages of Sole Proprietorships :
- Owners are fully liable. If business debts become overwhelming, the individual owner's finances will be impacted. ...
- Self-employment taxes apply to sole proprietorships. ...
- Business continuity ends with the death or departure of the owner. ...
- Raising capital is difficult.
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