The business ran

 The business ran

So after a certain period of time, according to the value of the shares, the amount is. received and in the case of shares, the capital is also safe, so more profit can be. obtained by

investing more.

Limited Liability

investment business in a shared investment company.

That the liability of the people holding shares in the joint capital company is. limited because of the loss. in the company, a shareholder has to bear the loss according to the value of the shares he has purchased.

managed under the supervision of qualified and skilled people. whose decisions usually help to grow the business and even if the. the company suffers a loss by chance, the shareholders do not have to bear a big loss.

As in the individual business, the individual and

Participants have to suffer in partnerships. (3) Transfer of Shares facilitates the transfer of shares of a public. limited, so this is the benefit of investing in a joint investment company.

That the company's shares can be. sold in the general market capital to get back their invested money, so as. soon as a shareholder of the company realizes some kind of weakness in the company's business

And if he realizes that the company cannot succeed. in achieving profit in the next financial year, then he. sells the shares of the company and gets back the money he has invested.

Legal Entity

It is common that the capital company has its own. legal entity and the company does business in its own name, the. status of the company is that of an artificial person, so all business agreements are. made with the company.

Thus, the process of investing in a joint investment. company is also legal, and keeping this legality in mind, the. share-based investment in the company is comparable to other business enterprises.

it's better.

(5) Long life: The business is. done under the capital. company has a longer lifespan than other businesses. organizations because the individual business depends on the. owner, of the business, if the owner of the business, is absent.

Or if there is an administrative weakness on his. part, then the method of business under which the owner is. of his business runs it, thus ending the partnership with the separation of a partner in the business.

But the existence of a company does not matter by. the separation or demise of a shareholder and its. business can continue for a long time, so the joint capital is more. beneficial to join the company on the basis of shares than organizations.

Define a sole proprietary business or a personal business. Describe the characteristics of a sole proprietary or individual business. single mill

Explain why business is popular in Pakistan.

Ans: Sole Proprietary Business (Sole Proprietorship)

A business that is. established, and managed, by a single, individual. is called a sole proprietorship or individual business.

This business organization is the simplest and. oldest, in which an individual chooses the nature of someone. business and invests his capital in it.

This capital can also be from his personal tail and can also

be obtained in the form of a loan. In this type of. business, the owner of, the business has, the right to make, all the. decisions related to the business and is the sole owner of all the profits made in the business.

He also has to bear any loss in the business. (1) According to G-Bakers, an organization is. run, by an individual, for, the sole purpose of making a profit. called single mill ownership twice in total. (2) Peterson and Plomin

In the opinion of Peterson and Plowman, a sole proprietary business can be. said, to be, a business entity, owned and managed by a single individual, so he is the sole, owner

of, its profits.

And bear the loss in it alone. (3) According to Thomas. J. Adams, the type of business organization in which. ownership and business management are. held by an individual is. called personal business.

A review of the above definitions shows that a. sole proprietary business or individual business is business. organization in which an individual establishes one's business. through his own personal efforts, business, and capital, then using his own resources.

In this way, he manages the business with his efforts, due to which he has full rights over all the business profits.

And he is the sole owner of the profits earned. from the business and he is also responsible for the loss of capital in the business or any loss management.

Characteristics of Sole Proprietorship is a sole. proprietary business or personal business organization that. owned by a single individual and can organize the business according to his wishes.

He does not have to be bound by anyone. make important decisions related to the business, so if he. is familiar with the business method.

If so, it helps to develop its own decision business, which. increases the production of the business and the sale of products.