Introduction To Business - MGT211 Lecture 03.ppt
- 2. Definition Sole Proprietorship is that type of business which is owned by one person.
- 3. Advantages of Sole Proprietorship Freedom in formation The easiest to establish Individuals are allowed to decide without interference of any other person. Easier to transfer the ownership of the business People wholly solely enjoy the ownership of the business and profits
- 4. Advantages of Sole Proprietorship Individual has unlimited opportunity to expand the size of the business Individual can keep the secrets of the business intact Individual has personal interest in the business Owners can make speedy decisions Easy to dissolve
- 5. Disadvantages of Sole Proprietorship Limited amount of capital Continuity problem Sole Proprietorship has limited life and is dependent on the owner Owner of the business has unlimited liability towards people whom he has to pay
- 6. Partnership A relationship of the people to share investments and profits Partnership act 1932 governs all affairs of the partnership
- 7. Advantages of Partnership More capital Relatively easier to form Sharing of responsibility Light credit standing Business can have more loan from various sources Secrecy
- 8. Advantages of Partnership Public Confidence Better Decision Easy to dissolve