A sole proprietorship, also known as the sole trader, individual entrepreneurship or proprietorship, is a type of enterprise that is owned and run by one person and in which there is no legal distinction between the owner and the business entity.
There are various well-known firms that were started as a sole proprietorship firm.
Famous sole proprietorship firm examples
Below mentioned are a few examples of famous sole proprietorship firm
- Walt Disney
As you know the name of your business regularly frames the initial introduction for a client. On the off chance that you execute business under a name not the same as your own name or the name utilized on the organization’s articles of arrangement, you’ll have to record a DBA report.
Naming your business may not be as basic as it appears. While choosing a name, attempt to make the name short, simple to recall, distinct of the business, and fit for drawing consideration. Contingent upon the business frame you pick, you may need to enroll or potentially get an endorsement from the neighborhood or state government where your business is shaped.
Salient Characteristics of the Sole Proprietorship form of Organization are as follows:
- Ease while formation as well as the closure of business: There are no legal formalities like a business registration that is required to start a sole proprietary business. In some cases, one may require a license to start. There is no separate law that governs sole proprietorship. Closure of the business can also be done easily.
- Sole proprietors have unlimited liability: This implies that the owner is personally responsible for payment of debts in case the assets of the business are not sufficient to meet all the debts. That is, in case you run out of capital, your personal assets like cars and apartments may be liable for payment of a debt.
- Sole risk bearer and profit recipient: The proprietor borne all the risk and as well enjoys all the benefits too. He receives all the business profits which become a direct reward for his risk-bearing.
- Management Bandwidth: The right to run the business and make all decisions lies absolutely with the sole proprietor.
- No distinction is made between the sole trader and his business: The owner is, therefore, held responsible for all the activities of the business.
Here in this article, we have known the number of famous sole proprietorship firms in India..
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