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forms of business orgnization

business class 11

3 terms · by Prachii Kamath · updated 2 hours ago

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Terms in this set

sole proprietor
a form of business organisation which is owned, managed and controlled by an individual who is the recipient of all profits and bearer of all risks.
features of sole proprietorship
1. formation and closure (easy) 2. liability (unlimited) 3. sole risk bearer and profit recipient 4. control (full) 5. no seperate entity 6. lack of business continuity
Merits (Sole proprietorship)
1. quick decision making 2. confidentiality of info 3. direct incentive 4. sense of accomplishment 5. ease of formation and closure