Sole proprietorship: When the ownership and management of a business controlled by one individual then it is called sole proprietorship. Ex:- Grocery, Stationary, Tea stall etc.
Pros
& Cons of SP:-
§ Easy formation
§ Better Control (Prompt decision making and Flexibility
in Operations)
§ Subject to fewer regulations
§ Not subject to corporate income tax
§ Ownership of all profits
§ Owner has unlimited liability
§ Difficult to raise capital
§ Business has a limited life
§ Difficult to do business beyond a certain size
