commerceproject1_original.pdf by Saanchit

An commerce project

1. Commerce Project
Saanchit Agarwal
Class - 9
Roll.No - 3808

2. Sole Proprietorship

3. INDEX
•Slide 4 - Acknowledgement
•Slide 5 - introduction
•Slide 6 - Advantages of sole proprietorship
•Slide 7 to 10 - Elaboration of slide 6
•slide 11 - disadvantages of sole proprietorship
•Slide 12 to 15 - elaboration of slide 11
•Slide 16 to 17 - conclusion

4. Acknowledgements
I would like to express my special thanks of gratitude to my
teacher Mam Priyankoo Das as well as our Head of School Sir
Vidukesh Vimal who gave me the opportunity to do this
wonderful assignment subject of commerce which helped
me push myself into researching and learning about new
things on the topic of Sole Proprietorship.

5. A sole proprietorship, also known as a
sole tradership, individual
entrepreneurship or proprietorship, is a
type of enterprise owned and run by one
person and in which there is no legal
distinction between the owner and the
business entity.
Introduction

6. Advantages of Sole Proprietorship
1. Easy and inexpensive process
2. Few government regulations
3. Tax advantages
4. Ease of formation and closure

7. The establishment of a sole proprietorship
is generally an easy and inexpensive
process. Certainly, the process varies
depending on the country, state, or
province of residence. However, in all
1. Easy and inexpensive process

8. Sole proprietorships adhere to a few
regulatory requirements. Unlike corporations,
the entities do not need to spend time and
resources on various government
requirements such as financial information
reporting to the general public.
2. Few government regulations

9. Unlike the shareholders of corporations, the
owner of a sole proprietorship is taxed only
once. The sole proprietor pays only the personal
income tax on the profits earned by the entity.
The entity itself does not have to pay income tax.
3. Tax advantages

10. 4. Ease of Formation and Closure
A sole proprietorship business is easy to form. There is
hardly any legal formality involved in setting up this
type of organisation. It is not governed by any specific
law. It is only required that the business activity should
be lawful and comply with the rules and regulations laid
down by local authorities. Also, the business can be closed
whenever desired by the proprietor without any legal..
complications.

11. Disadvantages of Sole Proprietorship
1. Unlimited liability of the owner
2. Limitations on capital raising
3. Limitation of Management Skills
4. Risk of Wrong Decisions

12. Since a sole proprietorship does not create a separate legal
entity, the business owner faces unlimited personal liability
for all debts incurred by the entity. In other words, if a
business cannot meet its financial obligations, creditors
can seek repayment from the entity's owner, who must use
his or her personal assets to repay outstanding debts or oth
financial obligations.
1. Unlimited liability of the owner

13. Unlike partnerships and corporations, sole
proprietorships generally enjoy fewer options
to raise capital. For example, the owner cannot
sell an equity stake to obtain new funds. In
addition, the ability to obtain loans depends
on the owner's personal credit history.
2. Limitations on capital raising

14. A sole proprietor may not be able to manage
the business e�ciently as he is not likely to
have necessary skills regarding all aspects of
the business. This poses di�culties in the
growth of business.
3. Limitation of Management Skills

15. Any wrong decisions taken by the
proprietor may bring disaster to his
business fortunes. As he is not assisted by
any person, it may lead to wrong decisions.
4. Risk of Wrong Decisions

16. conclusion
In conclusion, a sole trading concern is the
enterprises which are invested and managed by a
single person. In this business, sole-proprietor
take all risk and responsibility of business. The
profit of a business is also enjoyed by a single
person.

17. Example of sole proprietorship
(A) The name of undertaking - Gm enterprises
(B) The nature of its business - Sole proprietorship
(C) the name of its chairman - Mohit Agarwal
(D) the name of the place where it is situated - Gm
enterprises is situated at the heart of the town of
tinsukia. G.n.b road gm enterprises tinsukia, assam.

18. As a sole proprietorship, it becomes easy
for him to take all major decisions
individually but at the same time,
finance always is very limited and the
whole business is dependent on him. He has
to be carefull all the time.
Advantages and disadvantages of Sole
Proprietorship.