Ch.+8.1

Ch. 8.1 List advantages and disadvantages of Sole Proprietorships

Sole Proprietorships- A business owned and managed by a single individual

Advantages: Disadvantages:
 * Easy start-up, minimal paperwork and legal expense
 * relatively few regulations, a proprietorship is the least-regulated form of business organization
 * sole receiver of profit
 * full control
 * easy to discontinue
 * High degree of responsibility
 * liability- legally bound obligation to pay debts
 * limited access to resources, if you need more equipment for your thriving business the money will be coming out of your pocket
 * lack of human capital, as skilled as one may be, one isn't skilled in everything
 * turn down work because you may not have enough hours in the day or enough workers to keep up with demand
 * Lack of permanence, a sole proprietorship has a limited life