Some advantages of the sole proprietorship also apply to the small business

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Business

29 March, 23:59

Some advantages of the sole proprietorship also apply to the small business

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Demetrius Hooper · Answer 1

The statement is True.

Explanation:

There are many forms of business. Partnership, limited liability, sole proprietor, commercial, etc. Sole proprietorship is a business that is owned and run by a single person. That person is the owner of the business. We can call him an entrepreneur, or sole proprietor, or single trader, etc. There are many disadvantages of running business individually, as you are the one who is solely responsible for all the liabilities of the business. But at the same time, sole proprietorship has some benefits associated with it for the small business owners. The main advantage of running the business single handed is to enjoy the whole profit made out of the business. When the owner is responsible for all the liabilities of the company, just like that, he is the one who is receiving all the profits from the business. So when business is small, there is no need to divide the small amounts of profits between the shareholders. All the profit is kept by the individual owner.