Q. What do you mean by single proprietorship?
A single proprietorship is a non incorporated business owned by an individual and often managed by that same person. Single proprietors comprise lawyers, physicians, electricians and other people in business for themselves. Several small service businesses and retail establishments are as well single proprietorships. None of legal formalities are necessary to organize such businesses and generally business operations can begin with only a limited investment. In a single proprietorship system the owner is only responsible for all debts of the business. For an accounting purposes but the business is a separate entity from the owner. Therefore single proprietors should keep the financial activities of the business such as the receipt of fees from selling services to the public separate from their personal financial activities. For instance owners of single proprietorships must not enter the cost of personal houses or car payments in the financial records of their businesses.