1. Sole Proprietorships
Chapter 8 – Section 1

2. The Role of Sole Proprietorships
A business organization is an establishment formed to carry one commercial enterprise.
Examples: Companies and firms
A sole proprietorships is a business owned and managed by a single individual.
75% of all businesses are sole proprietorships
6% account for the total US sales.
75%

3. Requirements to open a sole proprietorship:
Authorization : Sole proprietorships must obtain a business license
Site permit : Must have a certificate of occupancy to use another building for business
Name : IF an individual does not use their own name as the business name, they must register some other kind of business name

4. Advantages & Disadvantages
Easy start – up
Few regulations
Sole receiver of profit
Full control
Easy to discontinue
Unlimited personal liability
Limited access to resources
Lack of permanence
Advantages of sole proprietorships
Disadvantages of sole proprietorships

5. Quiz Define Sole proprietorships
Describe in your own words how zoning laws are used,
Give an example of a sole proprietorship
State the advantages/disadvantages of sole proprietorships
How are sole proprietorships important to the economy?
Do you think sole proprietorships are helpful or harmful to the American economy? Why or why not?