SOLE PROPRIETORSHIP

 Sole proprietorship is a form of business unit which is owned and managed by one person.

It is oldest, simplest and the commonest type of business organization in Ghana. It also called one-man business or sole trader. For example, the owner of a private school, the owner of a hotel,plantain seller.

How a sole proprietorship business is set up

1. Sole proprietorship is established under the Business Names Act 1962.

2. The sole trader first has to identify the type of business he wants to do.

3. You need starts the business with capital from your savings or by borrowing from banks or from friends.

4. Having started the business, the sole trader goes to the Registrar General's Department office to register the business.

5. Being satisfied with the necessary requirements, the Register General's Department issues the sole trader with the certificate of Registration which authorizes the sole trader to commence business under the chosen business name.

The importance of sole proprietorship include the following.

1. It is easy and simple to form: The formation of a sole proprietorship business is very simple because it does new require difficult legal procedures.

2. It does not require huge capital to start with: The amount of money needed to start sole proprietorship business is very small. For example, one can start selling small things with Gh¢2.
3. There is quick decision-makig: The owner  does not  need to consult anybody when taking decision. This help him to do away With unnecessary delays.
4. He enjoys all the profit all alone: The sole trader does not share his profit with anybody. This gives him greater incentives to work hard.
5. The sole trader has complete independence: The owner can attend to and close from work at any day at any time he wishes.

Some characteristic of sole proprietorship

• It is owned and controlled by one man

• There is privacy in the business. This means managed and controlled by one man all business secrets are kept by the owner.

• The owner has unlimited liability. Because he will have to sell his private assets to pay his creditors when the business collapses.

•It is very easy to from because it does not require huge capital.

• The owner has personal with his customers which enables him to satisfy them.








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