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It is a form of business organization which is owned, managed and controlled by an individual who is the recipient of all profits and bearer of all risks. Identify the concept.
- a)Sole Proprietorship
- b)Cooperative Society
- c)Joint Hindu family business
- d)Partnership
Correct answer is option 'A'. Can you explain this answer?
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It is a form of business organization which is owned, managed and cont...
Concept: Sole Proprietorship
Sole Proprietorship is a form of business organization where a single person is responsible for all the decisions and operations of the business. It is the simplest and most common form of business ownership. The owner has complete control over the business, including its profits and losses.
Features of Sole Proprietorship:
- Single Ownership: The business is owned by a single person.
- Unlimited Liability: The owner is personally responsible for all the debts and losses incurred by the business.
- Sole Management: The owner has complete control over the management and operations of the business.
- Small Scale: Sole proprietorship is usually a small-scale business.
- Easy Formation: It is easy and inexpensive to set up a sole proprietorship.
Advantages of Sole Proprietorship:
- Easy Formation: It is easy and inexpensive to set up a sole proprietorship.
- Complete Control: The owner has complete control over the business, which allows for quick decision-making.
- Flexibility: The owner can easily make changes to the business as per the changing market conditions.
- Direct Incentive: The owner receives all the profits and has a direct incentive to work hard and maximize profits.
Disadvantages of Sole Proprietorship:
- Unlimited Liability: The owner is personally responsible for all the debts and losses incurred by the business.
- Limited Resources: The owner may have limited financial resources, which may restrict the growth of the business.
- Limited Management Skills: The owner may not have all the necessary skills required to manage all aspects of the business.
- Limited Life: The life of the business is limited to the life of the owner.
In conclusion, Sole Proprietorship is a business organization owned, managed and controlled by an individual who is the recipient of all profits and bearer of all risks. It is easy to set up and provides complete control to the owner, but also has limitations like unlimited liability and limited resources.
Sole Proprietorship is a form of business organization where a single person is responsible for all the decisions and operations of the business. It is the simplest and most common form of business ownership. The owner has complete control over the business, including its profits and losses.
Features of Sole Proprietorship:
- Single Ownership: The business is owned by a single person.
- Unlimited Liability: The owner is personally responsible for all the debts and losses incurred by the business.
- Sole Management: The owner has complete control over the management and operations of the business.
- Small Scale: Sole proprietorship is usually a small-scale business.
- Easy Formation: It is easy and inexpensive to set up a sole proprietorship.
Advantages of Sole Proprietorship:
- Easy Formation: It is easy and inexpensive to set up a sole proprietorship.
- Complete Control: The owner has complete control over the business, which allows for quick decision-making.
- Flexibility: The owner can easily make changes to the business as per the changing market conditions.
- Direct Incentive: The owner receives all the profits and has a direct incentive to work hard and maximize profits.
Disadvantages of Sole Proprietorship:
- Unlimited Liability: The owner is personally responsible for all the debts and losses incurred by the business.
- Limited Resources: The owner may have limited financial resources, which may restrict the growth of the business.
- Limited Management Skills: The owner may not have all the necessary skills required to manage all aspects of the business.
- Limited Life: The life of the business is limited to the life of the owner.
In conclusion, Sole Proprietorship is a business organization owned, managed and controlled by an individual who is the recipient of all profits and bearer of all risks. It is easy to set up and provides complete control to the owner, but also has limitations like unlimited liability and limited resources.
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It is a form of business organization which is owned, managed and cont...
Sole proprietorship is a business organization which is managed, owned and controlled by an individual who is the bearer of all his risks and recepient of all profits in the business.
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It is a form of business organization which is owned, managed and controlled by an individual who is the recipient of all profits and bearer of all risks. Identify the concept.a)Sole Proprietorshipb)Cooperative Societyc)Joint Hindu family businessd)PartnershipCorrect answer is option 'A'. Can you explain this answer?
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