Sole
proprietorship – merits and demerits
Sole
proprietorship – a
business in which a person responsible for managing all the business activity,
responsible for providing fund and bearing all the risk. It is also called
single man business or one person business. In these types of business a single
person is responsible for all the matters related with business.
 |
| merits and demerits |
Here, we mention
some merits or demerits like –
Merits - :
ü
Easy formation
ü
Highly motivated
ü
High level of business secrets
ü
Fast decision making
ü
Close relationship with different party
ü
High level of economic attention
ü
Flexible – decision & expansion
ü
Easy to start
Demerits - :
ü
One person to manage but uncertainty of life
ü
Did not have a wide range of managerial ability
ü
Low level of influence in market
ü
Every person have a limited capital to invest
