Last updated: July 16th, 2023 8:55 PM
What is meant by a proprietorship firm?
A proprietorship firm is a type of business organization that is owned and operated by a single person. It is one of the simplest and most common forms of business structure in India. The proprietorship firm is also known as a sole proprietorship or sole trader. In this article, we will discuss the characteristics, advantages, and disadvantages of a proprietorship firm.Proprietorship firm
A proprietorship firm is a type of business organization owned and operated by a single person known as the proprietor. In a proprietorship firm, the proprietor bears all the risks and enjoys all the business profits. The proprietor manages and controls the business affairs, makes all the crucial decisions, and formulates strategies. It is the proprietor's responsibility to meet all the obligations of the firm, and the proprietor provides the capital for the business. The life of the proprietorship firm depends on the life of the proprietor, and the business ends upon the proprietor's death, retirement, or insolvency.Characteristics of a Proprietorship Firm
Characteristics of a Proprietorship Firm are as follows:- Ownership:
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