1. I’m going to speak about sole proprietorship or individual proprietorship.

Sole Proprietorship

1. I’m going to speak about sole proprietorship or individual proprietorship.

A business may be privately owned in three forms: sole proprietorship, partnership, and corporation. The most countries with the market economy have all three forms of business ownership.

The simplest form of business organization is sole proprietorship. Sole proprietorship is the most common form of business ownership but it accounts for less than 20 per cent of all business receipts.

If you go into business alone it is called sole proprietorship. There is one owner. The owner provides the capital, has complete control of the business, keeps profit and bears the loss.

2. Now just a few words about advantages and disadvantages of sole proprietorship.

+ There are some advantages:

- you can go into business alone;

- you can start business with a small amount of capital;

- sole proprietorship is easy to form, you need not consult a lawyer;

- you can start and stop your business whenever you like;

- a sole proprietor decides upon his vacation, working hours, salary, hiring and firing;

- you can do books yourself or hire a book-keeper;

- you can make decisions, keep and control profits.

- The disadvantages are:

- sole proprietorship has unlimited liability, i.e. you can lose your personal assets if your business fails;

- a sole proprietor is responsible for all debts;

- sole proprietorship can’t get tax benefits;

- it is difficult to compete with large firms and to raise money for expansion.

3. In conclusion I’d like to say that small shops, service industries such as repair shops, beauty shops, laundromats, restaurants are examples of sole proprietorships.

Дата добавления: 2015-11-05