A sole proprietorship, also known as the sole trader or simply a proprietorship, is a type of enterprise that is owned and run by one natural person and in which there is no legal distinction between the owner and the business entity. The owner is in direct control of all elements and is legally accountable for the finances of such business and this may include debts, loans, loss, etc.
The sole trader receives all profits (subject to taxation specific to the business) and has unlimited responsibility for all losses and debts. Every asset of the business is owned by the proprietor and all debts of the business are the proprietor's. It is a "sole" proprietorship in contrast with partnerships (which have at least two owners).
A sole proprietor may use a trade name or business name other than his, her, or its legal name. They may have to legally trademark their business name if it differs from their own legal name, the process varying depending upon country of residence.[1]
Answer:
"B"
Explanation:
Sole proprietorship is a form of business owned and solely controlled by the owner.It is seen as the easiest business to set up as the requirement is very minimal compared to others , in fact it is not a legal entity as you can hardly differentiate the business from the entity.
One of its advantages is that the owner is in full control over the business.
To mention a dis advantage , the debt is not limited to the business as the owner's assets might be forfeited to settle a debt.
