Sole proprietorship is a business owned by a single individual or a single investment. Control the action itself When successful, profitable business. It will be the only beneficiaries. While acknowledging the risk of losses from a single as well. This type of activity is around the country a lot. Get the most popular and oldest business. The operation is complex High flexibility in the implementation. Business acquisitions are smaller than other examples of this type of business, such as street vendors, retail shops, wholesale salon tailors the farm to do so
characteristic of sole proprietorship
1. There is only one owner Invested less
two. Owners are responsible for all liabilities Unlimited. Creditors have the right to claim the property of their respective owners. If the assets of the Company inadequate settlements
3. owners get a return on investment as profits and losses only
four. The control operation by the owner alone,
the advantages and disadvantages of sole proprietorship
advantages
1. Easy to use less capital to establish
two. The freedom to decide by the owner only. Cause a rapid streamline operations
3. Entrepreneurs get all the profits only
four. Confidentiality of the business better. I know there are only
five. There are few legal regulations
6. Liquidation simple
cons
first. The expansion to a larger hard. Because funding is limited, If you want to borrow from the outside is difficult because of lack of collateral
2. The decision by the owner may have only one error-prone
third. If a loss Entrepreneurs losses And unlimited liability of the entity only
four. Time is no longer operating. Based on Owner If the owner is sick or died may stop or liquidate
five. The ability to think and management is limited. It is caused by a single owner.