Advantages and Disadvantages of a Sole Proprietorship.doc -...

Running head: ADVANTAGES AND DISADVANTAGES OF A SOLE PROPRIETORSHIP 1
Advantages and Disadvantages of a Sole Proprietorship
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ADVANTAGES AND DISADVANTAGES OF A SOLE PROPRIETORSHIP 2
Advantages and Disadvantages of a Sole Proprietorship
Introduction
A sole proprietorship is mainly a business managed and owned by a single person. It
remains the most straightforward and familiar kind of business body. The sole proprietorship
may have numerous individuals working in the business. However, it must maintain only one
single proprietor. Sole proprietorships are attached to multiple advantages as compared to other
business bodies. For instance, they are simple to create, and the proprietors enjoy solitary
dominance of the profits of the business (Cheeseman, 2016). They equally have drawbacks, the
largest of which is that the proprietor is responsible for the entire business liabilities and losses.
Notably, with limited permits to acquire or discrete forms to accompany, sole proprietorships are
relatively simple to create, simple to dissolve, and simple to maintain. Therefore, a detailed
analysis of the advantages and disadvantages is imperative before establishing a sole