(ðàññêàçàòü íàèçóñòü – 4 áàëëà)
Before starting your business you have to choose the type of proprietorship in which you will own it. You should know that any business should be privately owned in three main forms. These forms are: the sole proprietorship, the partnership and the corporation.
The sole proprietorship. The sole proprietorship is the simplest organizational form. There is one owner who takes all profit after paying income taxes, and who is responsible for all business debts. He or she can make decisions without consulting anyone.
The strength of this form is in the direct personal interest of the proprietor in the efficiency of his business.
The great disadvantage of the sole proprietorship is that the proprietor is personally responsible for the debts of his firm and his liability is unlimited. Another disadvantage of this form is the strict limitation of its ability to acquire capital for expansion.
One-person business is widely used in farming, retailing, building, repair work and personal services such as hair dressing, beauty shops and the like.