Sole Proprietorships Chapter 8 – Section 1

The Role of Sole Proprietorships A business organization is an establishment formed to carry one commercial enterprise. Examples: Companies and firms A sole proprietorships is a business owned and managed by a single individual. 75% of all businesses are sole proprietorships 6% account for the total US sales. 75%

Requirements to open a sole proprietorship: Authorization : Sole proprietorships must obtain a business license Site permit : Must have a certificate of occupancy to use another building for business Name : IF an individual does not use their own name as the business name, they must register some other kind of business name

Advantages & Disadvantages Easy start – up Few regulations Sole receiver of profit Full control Easy to discontinue Unlimited personal liability Limited access to resources Lack of permanence Advantages of sole proprietorships Disadvantages of sole proprietorships

Quiz Define Sole proprietorships Describe in your own words how zoning laws are used, Give an example of a sole proprietorship State the advantages/disadvantages of sole proprietorships How are sole proprietorships important to the economy? Do you think sole proprietorships are helpful or harmful to the American economy? Why or why not?