1. Sole Proprietorships Chapter 8, section 1

2. Bellringer
List some local businesses than you frequently shop.

3. The Role of Sole Proprietorships
A sole proprietorship is a business owned and managed by a single individual.
They are the most common form of business organization
Most sole proprietorships are small.
Sole proprietorships generate only about 6 percent of all United States sales.

4. Characteristics of Proprietorships
Most sole proprietorships earn modest incomes.
Many proprietors run their businesses part-time.

5. Advantages of Sole Proprietorships
There are several advantages to owning your own business
Ease of start-up
Relatively few regulations
Sole receiver of profits
Full control
Easy to discontinue

6. Ease of Start-Up Small amount of paperwork and legal expenses
Just about anyone can start a sole proprietorship.

7. Relatively Few Restrictions
A proprietorship is the least-regulated form of business organization.

8. Sole Receiver of Profits
After paying taxes
The owner of sole proprietorship keeps all the profits.

9. Full Control
Owners of sole proprietorships can run their businesses as they wish.

10. Easy To Discontinue You only have to pay off legal obligations
Taxes
Debt
No other legal obligations need to be met to stop doing business.

11. Disadvantages of Sole Proprietorships
Limited access to resources
Physical capital
Human capital
Lack permanence
Whenever an owner closes shop due to illness, retirement, or any other reason, the business ceases to exist.
Unlimited personal liability
Liability is the legally bound obligation to pay debts