You would like to start a cellular telephone equipment service business. You are considering organizing the business as a sole proprietorship. Identify the advantages and disadvantages of owning a sole proprietorship. List two advantages of owning a sole proprietorship.

Answer and explanation:

Sole proprietorships are entities where an individual owner is responsible for all the operations of the business. The advantages of establishing sole proprietorships include the low cost to start the business, profits and decisions are not shared, and there is minimal regulation from the government. At the same time, sole proprietorships have disadvantages such as unlimited liability, difficulties raising capital or the fact that the business lacks continuity if the owner is not present.

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