Nick wants to start his own business. Nick should consider a sole proprietorship if he: wants to minimize the financial risk he must accept as the owner of a business. wants to make it easy to attract qualified employees. expects rapid growth and wants to be able to raise a large sum of money. wants to be his own boss and can accept unlimited liability.

Question

Business

Mckenna Herring

27 January, 11:35

Nick wants to start his own business. Nick should consider a sole proprietorship if he: wants to minimize the financial risk he must accept as the owner of a business. wants to make it easy to attract qualified employees. expects rapid growth and wants to be able to raise a large sum of money. wants to be his own boss and can accept unlimited liability.

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Answers (1)

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Darren Dickerson · Answer 1

Wants to be his own boss and can accept limited liability.

Explanation:

Sole propietorship is a form of business in which a single individual is completely incharge of all the affairs concerning the business. There is no form of partnership, The individual is responsible for controlling and managing all business activities.

Sole proprietorship requires a low start up cost, this implies that it is very easy to set up the business organisation. The individual enjoys access to the profits gotten from the business as there is no sharing of profits.

The main disadvantages of sole proprietorship is that the individual is liable for all the debts incurred by the organisation and there might be difficulty in raising the amount of money required to start the business.