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Types of business entities 2022-02-09 21:30:07

問(wèn)題來(lái)源:

4. Types of business entities

4.1 Sole traders (proprietorship) —— a business owned and operated by one person.

This type of business, which is the simplest and oldest form of business, is owned and managed by one person. The owner runs the business with or without employees. Sole traders tend to operate in industries where the barriers to entry are low and where limited capital is required on start up.

Because the sole traders are not legally separated from the business they operate, they are fully and personally liable for any losses that the business might make.

Also, there is no legal requirement for a sole trader to make their financial reports become publicized. The main reason for them to prepare financial reports is for  .

Advantages of being a sole trader

? ease of formation

? limited paperwork

? complete control

? less regulatory control

Disadvantages of being a sole trader

? high risk (owner liable for all debts)

? unavailable of large capital

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王老師

2022-02-10 15:32:07 937人瀏覽

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