McGraw Hill/Irwin Irwin/McGraw Hill Foreign Language College
Copyright © 2003Copyright © 2007 by Xiaoping Zhang. All rights reserved by The McGraw-Hill Companies, Inc.
McGraw Hill/Irwin Irwin/McGraw Hill Foreign Language College
Copyright © 2003Copyright © 2007 by Xiaoping Zhang. All rights reserved by The McGraw-Hill Companies, Inc.
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Sole Proprietorship
Disadvantages Unlimited liability (the owner is personally responsible for all aspects of the business) Limited access to capital (lack of long period relation with banks and less security guarantee mean inability to raise large amounts of money Limited managerial expertise (one field expert does not mean expert in every aspect of business, i.e. marketing, finance, HR, operation etc) Life of the business is limited to the life of the proprietorship (the only way to transfer ownership of a sole proprietorship is to sell the entire business, otherwise, the life of the business ends when the sole proprietor dies)