A sole trading business is started on a small scale. With the passage of time, the business expands and faces additional problems of capital and management of business. Under such circumstances two alternative options are open to him, which are as follows: (a) To take a partner (b) To engage an assistant or servant. Option # 1. Taking a Partner: [...]
The factors listed below illustrate how a sole proprietor will be successful against large entrepreneur. 1. Normally, a business is stated as one-man venture, because of the many advantages it offers. As the proprietor makes a success of it and is faced with the problem of expansion, he resorts to the formation of the company. If his capital needs are [...]
After reading this article you will learn about the limitations of sole proprietorship with measures to overcome it. Limitations of Sole Proprietorship: When the business of a sole trader continues to expand, he has to face the following limitations: 1. Lack of Capital: As the sole proprietor has got a limited capital which he has already invested in the business, [...]