Mention and explain the advantages that sole proprietorship has over the limited liability company – NABTEB QUESTION

The advantages of the sole proprietorship over the limited liability company are:

i. Personal interest: The sole proprietor has personal interest in the business which is not so with shareholders

ii. Efficiency: Commitment of the owner guarantees higher efficiency.

iii. Decision can be easily and quickly taken devoid of bureaucratic tendencies.

iv. Privacy- The sole proprietor does not have to make public his account

v. There is personal contact with the workers and customers

vi. The sole proprietor is independent of other people hence he can take action without any consultation

vii. Its formation requires little capital