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1. A sole proprietorship, also known as the sole trader or simply a proprietorship, is a type of business entity that is owned and run by one individual and in which there is no legal distinction between the owner and the business.
2. It is easy to organize this business. Only small amounts of capital are needed to start and run a business.
It permits a high degree of flexibility to the owner since he/she is the boss of the business establishment.
Due to the owner's unlimited liability, some creditors are more willing to extend credit.
The owner receives all the profit of the business.
3. Raising capital for a proprietorship is more difficult because an unrelated investor has less peace of mind concerning the use and security of his or her investment and the investment is more difficult to formalize;[1] other types of business entities have more documentation. The enterprise may be crippled or terminated if the owner becomes ill. Since the business has the same legal entity as the proprietor, it ceases to exist upon the proprietor's death. Because the enterprise rests exclusively on one person, it often has difficulty in raising long-term capital.
Has limited resources. Banks are reluctant to grant loans to proprietorship considering its small assets and high mortality rate.
Unlimited liability for business debts. The single owner is responsible for paying all debts and damages of their business.
If the firm fails, creditors may force the sale of the proprietor's personal property as well as their business property to satisfy their claim.
When the owner dies, the continuation of the business is difficult, because a new owner must typically accept all liabilities of the business.
4. Some economic contributions of a small business are:
- a small business is often the starting point for development a new product or service. One person tries out an idea. If it is successful, the business grows, or the product may be bought by a larger firm;
- the small business can give an individual a chance to gain experience, which the person may use later on a large scale;
- small businesses are particularly well suited for meeting specialized local needs;
- artisans can provide individualized products for customers who have grown weary of mass-produced goods;
- small businesses provide a service where knowing one’s customers is important;
- sole proprietors are reassuring to customers who believe an individual who is accountable will do a good job.
5. artisans can provide individualized products for customers who have grown weary of mass-produced goods;
6. Oriflame и прочие
все остальное -сам. Мог бы, между прочим и поднапрячься - в тексте всего 2-3 абзацика.
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