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Saturday, June 13, 2020

Types of business ownership [Simple] - Tooprofit

Business ownership types

Sole Proprietorship Firm

Sole Proprietorship is the oldest form of business organization. This type of business is established by one person only. It is managed, organized, and financed by the same person. This person is the owner of all profits and losses from the business and is responsible for all the activities of the business.  

Qualities of Sole Proprietorship Firm of Commencement and Completion

EaseEstablishing and ending a solitary business is very easy, as it does not have to fulfill any legal action.

Speedy Decision

Make Tooprofit in a business, it is very important to take quick decisions. Prompt decisions can be easily taken in a lonely business.  

Privacy

Privacy is very important in business. The merchant can compete with other traders only during secrecy. This is possible only in an isolated business.  

Personal Connection

A solitary business has a direct relationship with the customers, due to which it can maximum profit by satisfying the customers.

earnConvenience in getting a loan

The obligation of a solitary business is unlimited and also his personal property in the payment of the loan. It can be used, so it is convenient to get a loan.  

Austerity

A solitary business itself oversees business; Therefore, it pays full attention to the minimum expenditure. He uses his means in such a way that maximum profit can be obtained at a minimum cost.

Personal Freedom

lonely businessman gets personal freedom and can do any work he wishes.

Self-confidence

A lonely business has to do all the tasks on its own and also had to make decisions on its own.  

Caution

In a lonely business, the entire risk is of a lonely trade; Therefore, he does every work with great caution and caution.  

Perseverance in work

The merchant is motivated to do more work by getting a monopoly on the benefit of a single business.  

Full control

A stand-alone business has complete control over its business because it is the business that has to oversee it, so any employee shortage or error can be rectified easily and quickly.

Limitations of Sole Proprietorship Firm

A sole proprietorship is The business form of more appropriate only in the following countries:  

(1) The business or profession is on a small scale.

(2) Those requiring less capital and qualification.

(3) In which the individual watching has more importance.

(4) Those with little on liability.

(5) Where the market is local and the area of ​​sale is limited.

(6) In which personal satisfaction of customers is required.

(7) In which decision-making is required expeditiously.

(8) In which the demand for the commodity is regular.



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