GK
BUSINESS ECONOMICS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Easy to set up and run
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All the profits go to the owner
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Cannot be continued when the owner dies
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The owner has full control of the business
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Detailed explanation-1: -Answer and Explanation: Unlimited liability (option a) is not an advantage of a proprietorship. Unlimited liability is an undesirable feature for a proprietorship because it means that the owner of the enterprise is personally responsible for all debts.
Detailed explanation-2: -If you’re a sole trade operating in a competitive market, you have the advantage that your business is private. Unlike limited companies, you don’t have to submit annual accounts or other financial or business information that competitors can view and use to their advantage.
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