What do you understand by Sole proprietorship firm? Explain its merits and limitations.

Q. What do you understand by Sole proprietorship firm? Explain its merits and limitations.

Ans: If entrepreneur starts sole proprietor form of business, then he has the following advantages.Advantages of Sole Proprietor Form of Business: 

1. Easy formation 

2. Direct motivation 

3. Better control 

4. Promptness in decision-making 

5. Secrecy 

6. Flexibility in operations 

7. Scope for personal touch