नमस्ते दोस्तों, मैं हूँ सतीशकुमार। आज के बिज़नेस लेसन में हम Sole Proprietorship Business Firm के बारे में डिटेल में जानेंगे। यह Sole Proprietorship Firm होता क्या है? इसके Characteristics क्या हैं? इसके Advantages क्या हैं? Disadvantages क्या हैं? और यह किन के लिए मोस्ट सूटेबल हैं? आदियों के बारे में डिटेल में समझेंगे। लेट’स बिगिन।
What is Sole Proprietorship Business Firm?
मार्केट में आपको जितने भी छोटे मोठे दुकान देखने को मिलते हैं न वो सब ज्यादातर Sole Proprietorship Business Firms ही होते हैं। Sole Proprietorship is the most easy and common type of business organization.
Sole —-> Single & Proprietorship —-> Ownership
The business organization in which a single person owns, manages, and controls all the activities of the business is known as Sole Proprietorship form of business organization. The person who owns and runs the Sole Proprietorship business is called a Sole Proprietor or Sole Trader.
Example ; Vegetable Shops, Grocery Shops, Beauty Parlors, Furniture Shops, Garages etc.
Characteristics Of Sole Proprietorship Business Firm
1) Single Ownership. Only one person owns the ownership i.e. Assets, Properties, and Risks of Business too.
2) No Sharing of Profit & Loss with Anyone. Sole Proprietor is the responsible for all profit and loss.
3) One Man’s Capital involved here. The business capital is arranged by the Sole Proprietor only by taking loans / own savings / burrowing from friends and family.
4) One Man Control. The owner takes the all decisions alone.
5) Unlimited Liability. The liability of a Sole Proprietor is unlimited here. If he failed to pay business loans, then his personal assets and properties are sold to recover the loan amount.
6) Less or No More Legal Formalities.
Advantages of Sole Proprietorship Business Firm
1) Easy to start and windup.
2) Direct motivation to work hard because owner get all profits directly.
3) Quick decision taking authority to single owner.
4) Better control over the business.
5) Maintenance of business secrets. No need to disclose any information to anyone.
6) Close personal relationships with customers and employees. It helps to know the likes, dislikes, needs, and demands of the customers.
7) Flexibility in business operation. You can change nature and scale of business anytime easily.
Disadvantages of Sole Proprietorship Business Firm
1) Limited Capital
2) Unlimited Liability
3) Limited Size
4) Lack Of Continuity
5) Lack of Management Skills
Sole Proprietorship Is Most Suitable For Whom?
Sole Proprietorship Is Most Suitable for following types of businesses ;
1) Where mannual skills are required.
2) For small and local market businesses.
3) Where customer needs personal attention.
4) Where nature of business is simple.
5) Where capital requirement is small and risk is not heavy.
Ok friends, this is the complete information of Sole Proprietorship firm. For more information watch Roaring Business School YouTube channel. All the Best…
