INTRODUCTION TO ENTREPRENEURSHIP
ENTREPRENEURIAL PROCESS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Easy to start
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Owner may lack business skills
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Difficulty in obtaining capital
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Owner pays for everything needed for the business
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Detailed explanation-1: -start-up costs are low. you have maximum privacy. establishing and operating your business is simple. it’s easy to change your legal structure later if circumstances change you can easily wind up your business.
Detailed explanation-2: -Quick Decision Making: The sole proprietor is in touch with the day to day operations of the business. He is the sole decision making authority. Hence, if there is any situation requiring an immediate decision, it is possible for the proprietor take any decision which he thinks is appropriate.
Detailed explanation-3: -Get started immediately. As a sole trader, you don’t need to register your business with Companies House. Simple registration. Fewer fixed overheads. Complete control. Financially rewarding. Fewer tax responsibilities. Less paperwork. Organisational flexibility. More items