Riki, the owner of Simply Sushi, is a sole proprietor. What are the chief characteristics, advantages, and disadvantages of this form of business organization? Riki wants to obtain additional capital to expand Simply Sushi, but she does not want to lose control of the firm. As a sole proprietor, what is her best option to attain these goals?

Question

Cristian Farrell

Business

10 November, 20:53

Riki, the owner of Simply Sushi, is a sole proprietor. What are the chief characteristics, advantages, and disadvantages of this form of business organization? Riki wants to obtain additional capital to expand Simply Sushi, but she does not want to lose control of the firm. As a sole proprietor, what is her best option to attain these goals?

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Answers (1)

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Lilah Cowan · Answer 1

A sole ownership is the most direct type of business association

Explanation:

In a sole ownership, the proprietor and the business are the equivalent. Any individual who makes a business without assigning a particular structure for its association is working together as a sole ownership. A preferred position of the sole ownership is its more notable adaptability over different types of business association. The capacity of a sole owner to raise capital while looking after control, and holding a similar structure, is constrained mostly to acquiring reserves. The debt financing is a better option to obtain more funds.