Why are most firms sole proprietorships -- what advantages do they have over other types of organizations?
They are easily formed, management is in one person's hands, and profits are not shared.
They get special tax breaks and there is limited liability for debts.
They can easily borrow money and seldom go bankrupt.
They are the most easily expanded with great opportunities for acquiring additional financial capital.

Question

Why are most firms sole proprietorships -- what advantages do they have over other types of organizations?
They are easily formed, management is in one person's hands, and profits are not shared.
They get special tax breaks and there is limited liability for debts.
They can easily borrow money and seldom go bankrupt.
They are the most easily expanded with great opportunities for acquiring additional financial capital.

anonymous · Answer

They get special tax breaks and there is limited liability for debts. @paki

paki · Answer

agree...