Advantages and Disadvantages of Sole Proprietorship
Advantage of Sole Proprietorship
1.Ease of start and ending the business.
2.Being your own boss.
3.Pride of ownership.
4.Leaving a legacy.
5.Retention of company profit.(the pleasure of earning as much as possible.)
6.No special taxes.(Taxed only on the profit.)
Disadvantages of Sole Proprietorship
1.Unlimited liability-the risk of personal losses.(Your business,your debts if damage occurred by the business.Including the personal items to cover the business debt, such as taking your house,car,etc.)
2.Limited financial resources.(Limited to raising funds)
3.Management difficulties.(Someone must keep inventory records,accounting records,tax records, and so forth.)
4.Overwhelming time commitment.(the owner must often spend long hours working.)
5.Few fringe benefits.(No health and disability insurance,no sick leave or vacation pay.)
6.Limited growth.(all creativity and know-how,funding is on you.)
7.Limited life pan.
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