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MERITS AND DEMERITS OF ONE MAN BUSINESS

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The following are some of the merits of sole proprietorship business 

1. DIRECT RESPONSIBILITY
The sole proprietors efforts are rewarded by his his personal profits and his ,mistakes by losses

2. CLOSE SUPERVISION
The sole proprietorship organization is small, he can supervise his staff, if any, personally

3. FLEXIBILITY
 Being his own master and having only the simplest organization, he can change the whole policy of his business in  very short time. He can make quick decisions.

4. FREEDOM FROM REGULATION
Apart from the normal regular responsibilities incurred by anyone who trains or employ staff, the only special duty required of sole proprietor is compliance with registration of business name Act, 
1961

5.PERSONAL CONTRACT
He is close to both clients and employees. He can offer personal service to customers and legal deals with employee's problems on a ''man to man'' basis 

MERITS OF SOLE PROPRIETORSHIP 
Some of the demerits of sole proprietorship form of business are as follows 

1. Unlimited liability
His  liabiity to meet meet the claims  of his creditors is competey unlimited. if his business fails; his own possessions and wealth can be call upon to meet his business debts. 

2. SMALL INITIAL CAPITAL 
The sum total available to start a one-man business may be too small to equip it properly 

3. INSUFFICIENT KNOWLEDGR OF THE BUSINESS
They are mant aspects in running a business effectively. Publishing, selling, display and amny other things must be handled by a sole proprietor and he is unlikely to be equally good at them all 

4. DIFFICUTY IN EXPANSION
Even a succesfu soe propritor is ikey to find it difficut to obtain extra finance  necessary for expansion.

5. END WITH YOUR DEATH 
The death of the sole proprietor will equally mean the end of business


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