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  • Chapter-2 Sole Proprietorship

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    Fatima Noor
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    This document discusses the concept, characteristics, advantages, and disadvantages of sole proprietorship. It notes that sole proprietorship involves single ownership by an individual, is a legal entity, requires capital investment, and carries unlimited liability for the owner. The advantages include easy formation, flexibility, tax benefits, and management by the owner. However, disadvantages include unlimited liability for the owner, limited capital and managerial resources, and inability to expand operations or continue if the owner leaves.

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    This document discusses the concept, characteristics, advantages, and disadvantages of sole proprietorship. It notes that sole proprietorship involves single ownership by an individual, is a legal entity, requires capital investment, and carries unlimited liability for the owner. The advantages include easy formation, flexibility, tax benefits, and management by the owner. However, disadvantages include unlimited liability for the owner, limited capital and managerial resources, and inability to expand operations or continue if the owner leaves.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    13 views5 pages

    Chapter-2 Sole Proprietorship

    Uploaded by

    Fatima Noor
    This document discusses the concept, characteristics, advantages, and disadvantages of sole proprietorship. It notes that sole proprietorship involves single ownership by an individual, is a legal entity, requires capital investment, and carries unlimited liability for the owner. The advantages include easy formation, flexibility, tax benefits, and management by the owner. However, disadvantages include unlimited liability for the owner, limited capital and managerial resources, and inability to expand operations or continue if the owner leaves.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
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    of 5

    S OL E PROPRIET OR SHIP

    CHA PTE R -2
    CONCEPT & CHARACTERISTICS
    1. Single Ownership
    2. Legal Entity
    3. Capital
    4. Unlimited Liability
    5. Management
    6. Profit
    7. Risk
    8. Duration
    ADVANTAGES OF SOLE PROPRIETORSHIP

    1. Easy Formation 9. Tax Advantages


    2. Freedom of Action 10. Easy Dissolution
    3. Quick Decision 11. Self-Employment
    4. Flexibility in Operations 12. Management Cost
    5. Personal Contacts 13. Personal Qualities
    6. Secrecy 14. Benefits of Goodwill
    7. High Credit Standing 15. Social Benefits
    8. Incentive & Satisfaction 16. Suitable for Small Business
    DISADVANTAGES OF SOLE PROPRIETORSHIP
    1. Unlimited Liability
    2. Limited Managerial Ability
    3. Limited Capital
    4. Limited Expansion
    5. Uncertain Duration
    6. Wrong Decision
    7. Lack of Specialization
    8. Lack of Public Confidence
    9. No Benefits of Large Scale
    10.Low Bargaining Power
    ANY QUESTIONS

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