You are here

Advantages And Disadvantages of Sole Proprietorship

Advantages And Disadvantages of Sole Proprietorship are listed below. So let us check it out some information on advantages and disadvantages to know more about sole proprietorship

Advantages of Sole Proprietorship :

  1. Sole proprietorship is a kind of business in which all the important decision for the company are taken by a single owner while is partnership two or more partners takes a decision , So in Sole proprietorship you can have a direct control on decision making for a business over partnership.
  2. In Sole proprietorship generally separate set of different accounting records does not required for acccounting of business and personal assets.
  3. Sole proprietorship is one of the easiest, less expensive and frequently preferred business while in corporation complex legal formalities for filing and setup is required for a business.
  4. In Sole proprietorship  you can use your current bank account in the name of sole proprietorship firm and sometiems your can also use your personal  bank account to start your business.
  5. Sole proprietorship is free from  double taxation, they are not required to pay an income tax twice.
  6. In Sole proprietorship the number of employees is not fixed, you can run a business with as low as single employee or no employee for a business.
  7. In Sole proprietorship a single person can manage operations of a company while  if entrepreneurship is owned by more than one person then managing operations sometimes becomes difficult.
  8. If you are a sole proprietor of your company then you can do a full time job in your own company.
  9. Both Sole proprietorship and franchise are most popular and successful methods to start a business.
  10. In Sole proprietorship  you can pay your health insurance directly from your pocket, hence you can write it off on your taxex.
  11. In Sole proprietorship an individual is the only owner of the company or a business hence you can receive hundred percent profit in your company.
  12. As Sole proprietorship has only one owner, all liabilities belongs to that person, He has full uninterrupted control over all types of business operations of a company. Unlimited liability.
  13. As the business and the revenue grows the  Sole proprietorship can be converted into private limited company.
  14. In a Sole proprietorship a sole proprietor can raise capital by taking loans to run a business.
  15. A Sole proprietor need not have to pay an unemployement tax.
  16. Workers compensation is not required by a sole proprietor.

Disadvantages of Sole Proprietorship :

  1. Sometimes in Sole proprietorship it becomes very difficult to get or qualify for bank loans to start your business.
  2. During sole proprietorship If you face a divorse then distribution of assets and to differentiate the business entity and  the personal assets becomes difficult.
  3. Sometimes Your spouse could potentially make a claim of the shares of the business in sole proprietorship.
  4. After the death of the sole proprietor: The sole proprietorship exist as long as the owner of the company is alive. If the owner passes the sole proprietorship to another person then the business continuous.
  5. If both husband and wife after marriage runs a business then they are not consider as sole proprietorship , they now be considered as partnership.
  6. Sole proprietor are required to pay sales tax on products and varioius taxable services offered by them.

Explore more Information

WHAT OTHERS ARE READING

Full Form of RCT

RCT - Root Canal Treatment

Other full form of RCT are Randomized Clinical Trials, Reverse Conducting Thyristor and Royal Corps of Transport.

so let us find out other meaning of the given terms.

Check it out other similar terms on this site. 

Steam engine

Definition

Steam engine is a heat engine in which a hot steam is used that converts the heat energy into mechanical energy. Sliding piston is present in the cylinder which moves by the expansion action of the steam which is generated in a boiler. Coal, wood or other combustible material are used as a source to produce steam in a boiler.

Process Validation Types Revalidation

Fourth type of process validation is Revalidation. It is performed to check the performance of the various process parameters, some of the points regarding revalidation are as follows. So let us have a look on revalidation:

Any part of process or entire process parameters are validated in order to check the performance of the process parameters.

To maintain the validated status of equipment, facilities, or manufacturing process , revalidation if often carried out.

Relax your mind by Watching TV

Watching TV offers various types of advantages for example, It gives updates about surrounding world.

"It offers various Benefits which will help us directly indirectly to boost our knowledge.

We can get lots of information from it. All members can sit together and can enjoy tv by watching social channels, favorite movies and live programs.

There are some educational channels which teaches children about many useful things which may not be taught in school.

Full Form of TDS

TAX Deducted at Source (TDS) is one of the mode of collecting Income Tax in India which is deposited in the government treasury, it is the revenue collected at the source of income.(Other full form of TDS is Total Dissolved Solids , which is a measure of combined content of organic as well as inorganic substance in a liquid such as water.)

About Azadirachta Indica for hair using neem oil

Neem can be used for hair related problems. Azadirachta Indica (neem) and other parts of the neem are useful to prevent dandruff, hair loss and to prevent grey hair. The neem based cream  can be applied on the scalp before going for bathing to treat dandruff.  Various shampoo and other products made of neem are also available in the market to prevent dandruff, hair loss and to keep hair healthy.  It can also be used to prevent scalp related problems which keeps scalp healthy. Neem oil is mixed with almond oil and coconut oil  keeps hair healthy.

Advantages and disadvantages of Chromatography

Chromatography is simple method. Chromatography can be handled by single person.

Other advantages are, Chromatography is used to separate components from complex mixture.

Different types of chromatography equipment are available for separation of different compounds.

Some of them are Gas Chromatography, Liquid Chromatography, Solid Chromatography, High performance liquid Chromatography, Solid liquid Chromatography, Liquid liquid Chromatography, Thin layer Chromatography. This method gives accurate results.