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SS1: COMMERCE - 2ND TERM

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  1. Modern Trends in Retail Business | Week 1
    2 Topics
    |
    1 Quiz
  2. The Wholesaler | Week 2
    5 Topics
    |
    1 Quiz
  3. Warehouse | Week 3
    3 Topics
    |
    1 Quiz
  4. Foreign Trade (International) | Week 4
    6 Topics
    |
    2 Quizzes
  5. Tariffs & Reasons for The Imposition of Tariffs | Week 5
    5 Topics
    |
    1 Quiz
  6. Functions of Customs & Exercise | Week 6
    4 Topics
    |
    2 Quizzes
  7. Commodity Exchange | Week 7
    7 Topics
  8. Sole Proprietorship | Week 8
    2 Topics
    |
    1 Quiz
  9. Partnership | Week 9
    5 Topics
    |
    6 Quizzes
  10. Money | Week 10
    3 Topics
    |
    2 Quizzes



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Lesson 8, Topic 2
In Progress

Advantages & Disadvantages of Sole Proprietorship

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Advantages of Sole Proprietorship

1. It requires small capital to start.

2. It is easy to establish and manage

3. Decisions can easily be implemented quickly

4. Two different businesses can be run and managed at the same time.

5. There is flexibility in the operation of the business in terms of time by both the owner and customers.

6. He has close relationship with some customers.

7. The business can be liquidated at any time.

8. The profit is free from taxation.

Disadvantages of Sole Proprietorship

1. The business has limited liability. That is he can lose his capital and even his personal belongings.

2. It is not a legal entity

3. The death of the owner can bring an end to the business.

4. Insufficient capital can pose a hindrance in the expansion of the business.

5. The sole proprietor may find it difficult to obtain a loan from the bank, due to a lack of collateral

6. The sole proprietor may not have the know-how, talents with which to manage the business well.

Evaluation Questions

1. Define a sole proprietorship

2. Enumerate five source of finance to a sole proprietor

3. Outline five advantages and four disadvantages of a sole proprietorship.

4. Explain five characteristics of sole proprietorship (SSCE, June 2013)

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Question 4

Explain five characteristics of sole proprietorship (SSCE, June 2013)

Ownership: The business enterprise is owned by one person

Objectives: The main objective of the one-man business is to make profit

Source of Capital: The capital required to set up and run the business is provided by the proprietor

Liability: The sole proprietor has unlimited liability

Legal Entry: It is not a legal entity as the owner is not separated from the business

Management: The business is controlled and managed by the sole proprietor himself

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