Advantages and disadvantages of sole proprietors

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  • Created by: Keshypops
  • Created on: 05-03-17 16:59

Sole proprietors

Advantages

  • Cheap and easy to set up
  • All profits kept by owner
  • Private financial information
  • Full control of decisions

Disadvantages

  • Difficult to raise capital
  • Unlimited liability
  • No continuity

Evaluation

Sole proprietors are cheap and easy to set up but they have unlimited liability which means that they can loose more than they've put into their business and they will also have a risk of loosing personal possessions.

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