Business Position Outline

Question: Discuss the advantages of proprietorship firms. Answer: I believe that sole proprietorship is best choice for the proposed business idea. Sole proprietorship is the concept where there is a single owner of a business and the person has unlimited power in the business. The person is responsible for all kind of liabilities and transaction responsibilities in the business. In this type of business, there is no such specific business tax that has to be paid by the company (Chowdhury, 2013). However, it has to be understood that in such business, a single person is liable for all kinds of debts. All kinds of business decisions fall under the shoulder of a single person. Most proprietors usually depend on loans and other personal assets to finance their business (Segal Choi, 2016). It is only after the business grows, there raises the opportunity of the expansion of the business with more investment. For a small start up business, sole proprietorship is an ideal form of business. References: Chowdhury, A. A. (2013). Proprietorship Firms: Advantages and Survival.Available at SSRN 2220979. Segal, S. P., Choi, J. S. (2016). Ownership form and quality of care in sheltered care facilities: Chain-affiliated business vs. sole proprietorship.Adult Residential Care,10(1).