Sole Proprietor
Sole proprietor
Advantage
(1) Easy to establish: Sole trading concern can be established very quickly and easily. Anybody who wants to start a business can do so, whenever, he likes. In Nepal, only nominal legal formality of registration is necessary.
(2) Easy to dissolve: Dissolution of sole trading concern equally simple. There are no legal formalities in this regard. Proprietor can dissolve business whenever he likes to do so.
(3) Effective control: In this form of business organization, proprietor is responsible for all types of activities. He controls all functions and takes decisions at appropriate time. So, the business is controlled in an effective way. He controls all functions and takes decisions at appropriate time. So, the business is controlled in an effective way.
(4) Direct motivation: The direct relationship between effort and reward serves as a powerful incentive to the proprietor to manage the concern efficiently. The proprietor being entitled to the entire profits of the concern tries to maximize profits by utilizing his talents and activities in the best possible way.
(5) Personal supervision: The proprietor is able to supervise every work of the business himself. This helps to build up a close and cordial relationship with the employees. He can take personal interest in his customers and he can meet their individual and typical needs easily and adequately. It ensures effectively and economy in the operation.
(6) Benefit of Unlimited Liability: The proprietor can obtain loan on his personal credit. The liability being unlimited, the creditors feel secure in extending credit.
(7) Prompt decision: The owner has full control over his business. So he is able to take decision promptly without consulting anybody. If more than one person is involved in making decision then delay is bound to occur.
(8) Secrecy: The proprietor can maintain business secrets. There is no legal regulation regarding the disclosure of business information. So he can
Advantage
(1) Easy to establish: Sole trading concern can be established very quickly and easily. Anybody who wants to start a business can do so, whenever, he likes. In Nepal, only nominal legal formality of registration is necessary.
(2) Easy to dissolve: Dissolution of sole trading concern equally simple. There are no legal formalities in this regard. Proprietor can dissolve business whenever he likes to do so.
(3) Effective control: In this form of business organization, proprietor is responsible for all types of activities. He controls all functions and takes decisions at appropriate time. So, the business is controlled in an effective way. He controls all functions and takes decisions at appropriate time. So, the business is controlled in an effective way.
(4) Direct motivation: The direct relationship between effort and reward serves as a powerful incentive to the proprietor to manage the concern efficiently. The proprietor being entitled to the entire profits of the concern tries to maximize profits by utilizing his talents and activities in the best possible way.
(5) Personal supervision: The proprietor is able to supervise every work of the business himself. This helps to build up a close and cordial relationship with the employees. He can take personal interest in his customers and he can meet their individual and typical needs easily and adequately. It ensures effectively and economy in the operation.
(6) Benefit of Unlimited Liability: The proprietor can obtain loan on his personal credit. The liability being unlimited, the creditors feel secure in extending credit.
(7) Prompt decision: The owner has full control over his business. So he is able to take decision promptly without consulting anybody. If more than one person is involved in making decision then delay is bound to occur.
(8) Secrecy: The proprietor can maintain business secrets. There is no legal regulation regarding the disclosure of business information. So he can