ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Answer and Explanation: In case of corporation, it is easier to raise large amount of required funds. This is because the corporations are allowed to sell their shares or ownership to raise funds. This option is not available in case of sole proprietorship and partnership.

Detailed explanation-2: -In most cases, a partnership will be able to raise capital more easily than a sole proprietorship, but not as easily as a corporation. The borrowing power of each partner may be pooled to raise debt capital, or additional partners may be admitted to increase this pooled borrowing power.

Detailed explanation-3: -Advantages of a Sole Proprietorship Easiest and least expensive form of ownership to organize. Sole proprietors are in complete control, and within the parameters of the law, may make decisions as they see fit.

Detailed explanation-4: -A sole proprietorship is easy to form and gives you complete control of your business. You’re automatically considered to be a sole proprietorship if you do business activities but don’t register as any other kind of business. Sole proprietorships do not produce a separate business entity.