Sole proprietary business

Sole proprietary business

Or as there are no legal complications in establishing. a personal business, there is also virtue. in this business that the process of its transfer is also easy, for the owner of the business. has all the powers of the business.

Thus, he can hand over the business to another. person and separate from the business, usually, the owner. the business transfers the business to his relatives and loved ones. ones who run the business in his place.

But even if he wants to sell the running. business, he does not have to go through any legal complications, and he. can sell his business to another person at whatever price he wants.

Disadvantages or Demerits of Sole Proprietorship). By running it from a private business or personal business. where there are many types of benefits due to personal ownership.

It helps the sole employer to get these funds. But there. are also flaws in personal business, due to which many entrepreneurs

are opposed to single-owned businesses. Sole proprietorship business or individual

The drawbacks or disadvantages of the business are as follows:

(1) Financial weakness (2) Unlimited liability (3). Personal qualifications (4) Uncertain life (7) Government incentives (8) Risk of loss

(6) Administrative problems (5) Limited size financial weakness (Financial Weakness)

It is the drawback of a sole proprietary business. an individual who suffers from financial weakness. Because all the capital of this type of business is. invested by the individual.

Thus, it takes all possible precautions in the use of. capital, due to which there is a lack of finances. resources to meet. the subsidiary trade, because the purpose of the business is not only to produce goods for sale.

rather, it needs to, take advantage of, a variety of, sources too. market it, but due to limited financial resources in. the individual business, there is some administrative weakness somewhere.

due to, this, it is not possible, to develop the business. a lot and the sole employer continues the business. activities within a certain scope.

2 Unlimited Liability The second major disadvantage of. a single proprietary business or individual business. is its unlimited liability associated with the owner of the business?

If the owner of the business only uses his personal capital for the business

And if there is a loss in the business, then its personal capital is. lost, in such a case, if it is to maintain. the existence of the business.

He gets a loan and invests the head of the loan in the. business, but still has difficulty managing the business, then. he has to face a loss in the business, then he has to pay the debt.

All business assets have to be. sold and even if they. do not complete the repayment of the loan related to the. business, they have to sell their personal property to repay the. loan because the borrower has to recover his debt.

His personal property can be. auctioned, thus not only does the business end, but the person becomes completely. bankrupt.

Personal Ability A drawback of a single proprietary. business individual business is that it depends. on the personal ability of an individual who owns the business because of the sole. employer not only has to meet the capital need for

the business.

In fact, all the decisions related to the management of the business have to be. made themselves, in the modern era, to run the business even on a small scale, some such arrangements have to be. made, which one person cannot control.

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