If the restaurant will do business as sole proprietor reasons to select a business owner himself alone, because that person is the owner or a single investment. Can control the entire operation. If successful, it would have been profitable only benefits. At the same time, it accepts the risk of loss from a single as well. But we also have high agility in operations decision.
Characteristics of proprietorship
1. There is only one owner. Invest at least
2. the owner is responsible for all the liabilities in an unlimited number of creditors have the right to claim the property of their respective owners. If the property of the parties Insufficient payment
3. the owner of a payoff from investment in both profits and losses alone.
4. control of the operation by the owner alone.
Advantages and disadvantages of proprietorship
Advantages
1. the establishment of easy-to-use less capital.
2. the freedom of decision, operated by a single owner. Cause agility in operations.
3. operators receive all profits alone
4. confidentiality of the business are good, because there is only one person who knows.
5. There is little legal regulations.
6. the liquidation is easy.
Disadvantages.
1. a larger expansion is difficult because of limited funds and loans from the outside will be difficult because of the lack of collateral.
2. the decision by the owners of just one person, there may be a simple error.
3. If there are losses. Entrepreneurs get losses and liabilities of the parties responsible for an unlimited number of single.
4. period of operation are often not longevity depends on the owner. If the owners of the sick or died, or may be interrupted;
5. the ability to think and work management is limited due to the owners of the media only.