Question

you are running a business as sole proprietor. how do you consider this as the best from of business organisation? give any two reasons. in 40-60 words

Answer 1

1. Easy to start and dissolve: a sole proprietor can be set up easily and quickly. No legal formalities and expenditure are involved in the establishment of a proprietorship. There is no need to associate others or to enter into any agreement. Only a licence may be needed in special cases. He can start the business whenever he desires. Similarly, could also close it whenever he desires.
2. Quick decision: a sole proprietor is completely free to take decisions and to implement them. He need not to consult others and seek their approval. Quick decision and prompt action helps to improve the efficiency of the business. He can take on the spot decisions and will, therefore, not let any opportunity slip away