If we have to invest certain money in a business and operate it. Out of all the legal forms of businesses, ie. Sole Proprietorship, Partnership or Company, which we choice is \"Sole Proprietorship\" or \"Sole trader\" because it is always to start a business at a small level. As the name sugggests, these firms are owned by one person, who performs its day-to-day jobs. Sole proprietors owns all the assets of the business, assumes all the liabilities and investments. The person also owns the profits generated by the business. The owner have to secure all the necessary licenses, tax identification numbers, and certifications of name. The related advantages and dis-advantages of the sole proprietorship over the other forms of business organisations are : Advantages : (1) Easiest and least expensive form of ownership to organize. (2) Sole proprietor is in complete control of business and make decisions under the parameters of the law. (3) Sole proprietors receive all income and profits generated by the business. (4) Profits from the business are entered and taxed directly through the owner\'s personal tax return. (5) The business under the sole proprietorship is easy to dissolve whenever desired. Disadvantages : (i) Sole proprietors have unlimited liability and are legally responsibility for all debts. (ii) Proprietor can raise funds from personal savings or consumer loans. (iii) Have a hard time while handling employees being alone superviso of the enterprise. (iv) Federal income tax is being charged at the lower level under the Sole-proprietorship. (v) The sole proprietor can transfer the business just by the sale of business net assets and do not have face much difficulty in exiting in comparison to other forms like corporation or partnership. =================================== Solution If we have to invest certain money in a business and operate it. Out of all the legal forms of businesses, ie. Sole Proprietorship, Partnership or Company, which we choice is \"Sole Proprietorship\" or \"Sole trader\" because it is always to start a business at a small level. As the name sugggests, these firms are owned by one person, who performs its day-to-day jobs. Sole proprietors owns all the assets of the business, assumes all the liabilities and investments. The person also owns the profits generated by the business. The owner have to secure all the necessary licenses, tax identification numbers, and certifications of name. The related advantages and dis-advantages of the sole proprietorship over the other forms of business organisations are : Advantages : (1) Easiest and least expensive form of ownership to organize. (2) Sole proprietor is in complete control of business and make decisions under the parameters of the law. (3) Sole proprietors receive all income and profits generated by the business. (4) Profits from the business are entered and taxed directly through the owner\'s personal tax return. (5) The business under the sole proprietorship is eas.

1. If we have to invest certain money in a business and operate it. Out of all the legal forms of
businesses, ie. Sole Proprietorship, Partnership or Company, which we choice is "Sole
Proprietorship" or "Sole trader" because it is always to start a business at a small level. As the
name sugggests, these firms are owned by one person, who performs its day-to-day jobs.
Sole proprietors owns all the assets of the business, assumes all the liabilities and investments.
The person also owns the profits generated by the business. The owner have to secure all the
necessary licenses, tax identification numbers, and certifications of name.
The related advantages and dis-advantages of the sole proprietorship over the other forms of
business organisations are :
Advantages :
(1) Easiest and least expensive form of ownership to organize.
(2) Sole proprietor is in complete control of business and make decisions under the parameters of
the law.
(3) Sole proprietors receive all income and profits generated by the business.
(4) Profits from the business are entered and taxed directly through the owner's personal tax
return.
(5) The business under the sole proprietorship is easy to dissolve whenever desired.
Disadvantages :
(i) Sole proprietors have unlimited liability and are legally responsibility for all debts.
(ii) Proprietor can raise funds from personal savings or consumer loans.
(iii) Have a hard time while handling employees being alone superviso of the enterprise.
(iv) Federal income tax is being charged at the lower level under the Sole-proprietorship.
(v) The sole proprietor can transfer the business just by the sale of business net assets and do not
have face much difficulty in exiting in comparison to other forms like corporation or partnership.
===================================
Solution
If we have to invest certain money in a business and operate it. Out of all the legal forms of
businesses, ie. Sole Proprietorship, Partnership or Company, which we choice is "Sole
Proprietorship" or "Sole trader" because it is always to start a business at a small level. As the
name sugggests, these firms are owned by one person, who performs its day-to-day jobs.
Sole proprietors owns all the assets of the business, assumes all the liabilities and investments.
The person also owns the profits generated by the business. The owner have to secure all the
necessary licenses, tax identification numbers, and certifications of name.

2. The related advantages and dis-advantages of the sole proprietorship over the other forms of
business organisations are :
Advantages :
(1) Easiest and least expensive form of ownership to organize.
(2) Sole proprietor is in complete control of business and make decisions under the parameters of
the law.
(3) Sole proprietors receive all income and profits generated by the business.
(4) Profits from the business are entered and taxed directly through the owner's personal tax
return.
(5) The business under the sole proprietorship is easy to dissolve whenever desired.
Disadvantages :
(i) Sole proprietors have unlimited liability and are legally responsibility for all debts.
(ii) Proprietor can raise funds from personal savings or consumer loans.
(iii) Have a hard time while handling employees being alone superviso of the enterprise.
(iv) Federal income tax is being charged at the lower level under the Sole-proprietorship.
(v) The sole proprietor can transfer the business just by the sale of business net assets and do not
have face much difficulty in exiting in comparison to other forms like corporation or partnership.
===================================