--%>

Advantage and disadvantage of Sole proprietorship

Illustrate the advantage and disadvantage of Sole proprietorship?

E

Expert

Verified

Advantages: easy to set up; proprietor is his/her own boss; because profit is proprietor’s income, there is an incentive to operate the business efficiently.

Disadvantages: financial resources are limited and insufficient; the proprietor is responsible for all of management functions; the proprietor is subject to unlimited liability.

   Related Questions in Business Economics

  • Q : Explain increased global competition

    Explain increased global competition?

  • Q : When productive resources are utilized

    While productive resources are utilized efficiently: (w) prices greatly exceed production costs for current outputs. (x) opportunity costs are at their minimums for all goods. (y) domestic production exceeds the value of foreign output. (z) the value

  • Q : Limitation of building blocks for a

    Building blocks for a capitalist system would not consist of: (1) supplies and demands. (2) private property rights. (3) laissez-faire policies. (4) market-found prices and outputs. (5) distribution of income in accord along with the principle, &ldquo

  • Q : Equal share criterion of distribution

    According to the equivalent share criterion of the distribution, individuals must: (1) Share income according to personal requirement. (b) All make equivalent shares of output. (3) Each consists of incomes equivalent to their productive output. (4) Re

  • Q : Define Dependent and independent

    Define Dependent and independent variables?

  • Q : Factors of production and the method

    Who owns the factors of production and the method used to coordinate economic activity?

  • Q : Change in supply and a change in the

    Distinguish between a change in supply and a change in the quantity supplied?

  • Q : Categorization of economists for buying

    Assume that you bought a ton of gold in Santiago, and Chile for $450 per ounce and immediately sold all of this in Antwerp, Belgium for $480 per ounce. Therefore economists would categorize your movement as: (i) arbitrage. (ii) scalping. (iii) screening. (iv) speculat

  • Q : Explain the behavior of the workers Use

    Use the economic perspective to explain the behavior of the workers?  Why do they work so diligently?

  • Q : Basic supply determinants of other than

    Illustrate the 6 basic supply determinants of other than price?