–\u00a0<\/span><\/p>\n

<\/p>\n

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Forms of Business Entities<\/span><\/b><\/h3>\n

There are different types or form of business. <\/span><\/p>\n

But according to syllabus only three types of business are mentioned; they are:<\/span><\/p>\n

1. Sole proprietorship<\/span><\/p>\n

2. Partnership firm <\/span><\/p>\n

3. Joint Stock Company<\/span><\/p>\n

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Sole Proprietorship<\/span><\/b><\/h2>\n

A\u00a0<\/span>sole proprietorship is also known as the\u00a0<\/span>sole trader\u00a0<\/span>or a\u00a0<\/span>proprietorship. <\/span><\/p>\n

It is run by one individual or one legal person. <\/span><\/p>\n

There is not legal difference between the owner and the business. <\/span><\/p>\n

The owner controls all the elements of the business. <\/span><\/p>\n

His family can support him. He is accountable for the finances of the business.<\/span><\/p>\n

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 <\/p>\n

A sole proprietorship is also known as the sole trader or a proprietorship.<\/span><\/em><\/span><\/p><\/div>\n

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The owner receives all profits and has unlimited responsibility for all losses and debts. <\/span><\/p>\n

Every asset of the business is owned by the proprietor and all debts of the business are payable by him. <\/span><\/p>\n

A sole proprietor may use a trade name or business name. <\/span><\/p>\n

Some family members can help to run the business. <\/span><\/p>\n

But they are not partners or shareholders. <\/span><\/p>\n

Sole proprietorship can use trademark and copyright. <\/span><\/p>\n

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There are two types of sole proprietorship business; they are:<\/span><\/p>\n

(a) Goods selling<\/span><\/p>\n

(b) Service providing <\/span><\/p>\n

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Advantages of sole proprietorship <\/span><\/b><\/h3>\n

The main advantages of sole proprietorship are given below: <\/span><\/p>\n

Easy to establish a sole proprietorship. <\/span><\/p>\n

Comparatively low cost needs to start business.<\/span><\/p>\n

Lowest regulatory burden.<\/span><\/p>\n

Direct control of decision making.<\/span><\/p>\n

Minimal working capital is required.<\/span><\/p>\n

Tax to government is according to PAN and VAT.<\/span><\/p>\n

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Disadvantages of<\/span><\/b> sole proprietorship <\/span><\/b><\/h3>\n

The main disadvantages of sole proprietorship are given below: <\/span><\/p>\n

Unlimited liability for business debts. <\/span><\/p>\n

Most of the business cannot be run if proprietor is absent.<\/span><\/p>\n

Difficulties in raising capital. <\/span><\/p>\n

He\/she has to manage everything.<\/span><\/p>\n

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Thank you for investing your time.<\/span><\/i><\/p>\n

Please comment on article.<\/span><\/i><\/p>\n

You can help me by sharing this article at your social media platform.<\/span><\/i><\/p>\n

\u00a0<\/span><\/p>\n

Jay G<\/span>o<\/span>o<\/span>g<\/span>l<\/span>e<\/span>, Jay YouTube<\/span>, Jay Social Media<\/span><\/span><\/p>\n

\u091c\u092f \u0917\u0942\u0917\u0932, <\/span><\/strong>\u091c\u092f \u092f\u0941\u091f\u094d\u092f\u0941\u092c<\/span><\/strong>, \u091c\u092f \u0938\u094b\u0936\u0932 \u092e\u0940\u0921\u093f\u092f\u093e<\/span><\/strong><\/b><\/p>\n

\u00a0<\/span><\/b><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

–\u00a0 \u00a0 Forms of Business Entities There are different types or form of business. But according to syllabus only three types of business are mentioned; they are: 1. Sole proprietorship 2. Partnership firm 3. Joint Stock Company \u00a0\u00a0 \u00a0 Sole Proprietorship A\u00a0sole proprietorship is also known as the\u00a0sole trader\u00a0or a\u00a0proprietorship. It is run by one […]<\/p>\n","protected":false},"author":19997,"featured_media":3600,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1453,1451,11],"tags":[1519,1517,1518,1516,1520,1521,948,1514,969,972,1522,1515,971,970,968],"writers":[1301],"yoast_head":"\n