Explain five features of sole proprietorship form of business

Explain five features of sole proprietorship form of business

Features of sole proprietorship form of business

1. ​Owned /formed by in person who provides the capital/starts the business.
2. Faster decision making/ (ultimate) decision made by the proprietor/ alone since he/she does not need to consult/has no one to consult.
3. Has limited life as its existence depends on the hope of the owner
4. Business owner has unlimited capital/management skills
5. Owner bears all the risks/losses of the business (alone) since he /she has no one to share with
6. Business owner has unlimited liability since personal property/assets may be attached
7. Managed by the owner with /without assistance of family members/ employees/which is tiring/forced to work for long hours.
8. Sole trader /enjoys all the profits alone since he/she has no one to share with
9. Easy /simple formation as if requires few /no legal formality/might only require a trading license
10. Flexibility/adaptability to change/accept e.g. of change as explanation
11. Secrecy/ confidentiality of information/ operation / no other people have access
12. Not a legal entity as the owner and the business are treated as one/the same.

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