Sole Proprietorship Advantages

A sole proprietorship refers to that form of business organization which is run and owned by a single person who is also the owner of the firm. Under sole proprietorship there is no difference between the firm and the owner unlike a company which is a separate legal entity apart from its owners. Given below are various advantages of a sole proprietorship –

1. Under sole proprietorship it is the owner who takes all the decisions regarding the business so he or she has the complete authority and therefore any reward out of those decisions will belong to only to the sole proprietor.

2. Sole proprietorship is easy to establish as compared to either establishing a company or a partnership firm.

3. Under sole proprietorship profits are taxed only once which is not the case with the listed companies, which have to pay tax not only on profits but also on dividend which it gives to the shareholders of the company.

4. Sole proprietor does not have to publish the results like a listed company and also this type of business does not need to follow strict guideline of stock exchanges and other regulatory bodies.

5. Another advantage of sole proprietorship is that there is no risk of any loss due to others actions which happen in case of partnership or a company.

1 comment… add one

Leave a Comment

Related pages

unsystematic risk examplesmixed economy definition and examplemerits of globalisationcashless economyadvertising in monopolistic competitionmonopolistic competition examples companiesdefinition of profitability ratiodrawer & draweepremium pricing strategy advantages disadvantageswhat consignee meanswhat are current liabilities examplesformula for degree of operating leverageautocratic organizationdisadvantages of marketing strategyconsignor and consignee meaningmerits and demerits of internetadvantages and disadvantages of authoritarian leadershipkinds of chequefinancial ratio analysis advantages and disadvantagesconsistency concept in financial accountingbarter trade meaningexamples of primary industryauthorized vs issued sharesadam smith absolute advantage theorywhat is mixed economiesadvantage and disadvantage of globalizationplanned economy characteristicsadvantages and disadvantages of convertible bondsadvantages and disadvantages of joint venturetypes of mergers and acquisitions with examples pptrepo full formslr and crrwhat are the disadvantages of socialismneft long formtds full fromindirect quotation definitionhorizontal analysis accounting examplejournal entry of loan taken from bankcrr and slr meaningdifferentiate between assets and liabilitiesadvantages of marketing segmentationmoil ipoadvantages capitalismhorizontal and vertical analysis of balance sheetwhat is idle time in cost accountingcapm assumptionspayback period meaningunearned income in balance sheetvertical analysis of a balance sheetunearned revenue accountcheque deposit procedureunsystemic riskmanagerial accounting relevant costs for decision makingadvantages of autocracy governmentcurrent liabilities definition in accountingdefine certificate of depositsdemerits of cost accountingimplicit cost vs explicit costadvantages and disadvantages of fifo and lifoconsumer durables examplespurpose of preparing trial balancebundling pricing strategy examplesunearned income in accountingdifference between process costing and job costingprofit push inflationnormal goods vs inferior goodshorizontal mergersdeflation advantages and disadvantagesconglomerate examplethe advantages of globalisationlaw of diminishing return in economicsexample of unitary elastic demandformat of comparative balance sheetwhat are the disadvantages of globalisationinferior goods in economics