The sole proprietor runs the business with the help of his employees. He raises capital for the business by borrowing from his personal resource and personal security. He is responsible for all the decisions of business. The sole proprietor has unlimited liability. It means that he should use not only the amount invested in the business to pay the creditors, but also his total wealth.
Sole proprietorship is the simplest form of business organisation. In it, a single person supplies capital and makes decisions. He has sole right over profit and bears all risks and losses of the business. The ownership and control of the business lies with a single person. Particularly in developing countries, sole proprietorship is more prevalent than others. Such businesses are found to be concentrated in the areas such as farming, retail trade, building construction, financial service, sale and purchase of land, houses etc.
Sole proprietorship is the simplest form of business organisation. In it, a single person supplies capital and makes decisions. He has sole right over profit and bears all risks and losses of the business. The ownership and control of the business lies with a single person. Particularly in developing countries, sole proprietorship is more prevalent than others. Such businesses are found to be concentrated in the areas such as farming, retail trade, building construction, financial service, sale and purchase of land, houses etc.
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