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What is sole proprietorship? |
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Answer» #Business owned by a single owner#small scale#no nees to share profit with anyone#takes his own decision#unlimited liability Sole proprietorship means a business owned, financed and controlled by a single person who is recipient of all profit and bearer of all risks.It is SUITABLE IN AREAS OF PERSONALISED SERVICE like beauty parlour, hair cutting saloons & small scale activities like retail shops.Features1. Single ownership:\xa0It is wholly owned by one individual.2. Control:\xa0Sole proprietor has full power of decision making.3. No separate legal entity:\xa0Legally there is no difference between business& businessmen.4. Unlimited liability:\xa0The liability of owner is unlimited. In case the assets of business are not sufficient to meet its debts, the personal property of owner can be used for paying debts5. No legal formalities:\xa0Not required to start, manage and dissolve such business organization.6. Sole risk bearer and profit recipient:\xa0He bears the complete risk and there is no body to share profit/loss with him. |
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