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Task 9.3. Writing: Write the summary to the given text



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Task 9.3. Writing: Write the summary to the given text
Sole proprietorship
Without businesses, we could not meet our wants and needs.
They provide the organization for producing goods and services efficiently and in large quantities. They have given our consumers one of the highest standards of living. A sole proprietorship is a business or firm owned by one person. Sole proprietorships are often found in businesses offering services to consumers. Examples of sole proprietorships are clothing shops, travel agencies, florists, TV repair shops, and so on.
The sole proprietorship has several advantages. First, it is simple to start. Depending on local laws, the only requirement for starting a sole proprietorship may be a license. Second, because the business is owned by one person, that person is free to do as he or she pleases. When you are sole proprietor, you are the boss. No one tells you how to run your business.
A third advantage is that you receive all of the profits. You have good reason to work hard for all of those benefits.
A fourth advantage comes when the sole proprietor is paying taxes. A sole proprietor pays taxes only once on the income from the firm.
A sole proprietorship has some disadvantages, too. Although a sole proprietorship may be easy to start, its owner may have trouble getting money.
Maybe you have to dip into savings or borrow money from a bank. Friends may come through with a loan – although you may have to pay interest on it. A shortage of money is a common problem for sole proprietorship because they depend on the resources and abilities of just one person.
Another disadvantage of the sole proprietorship is that the business ends when the owner leaves.
A sole proprietorship has a limited to the time the owner is willing and able to run the business.
Most sole proprietorships remain small business. When it comes to buying materials, small size can be a handicap. A reduction in price, or discount, is often given for buying in large amounts, saving time and money in collecting and shipping goods. Such a discount may not be available to a small firm.
Still another problem with a small but growing sole proprietorship is that the owner may not be able to all of the work. The owner may be able to hire some family members or be forced to employ other workers.
It is nice to be your own boss and to make 100 percent of the profits, but what if the business does not make a profit? You are 100 percent responsible for the losses! There is no one to share them with. In addition, as the owner you must make all of the decisions. Even if you do not have the special skills to make all kinds of decisions in the right way, it is still your show.
If the debts of the proprietorship are greater than the things it owns, or its assets, the owner is still held responsible for the difference. Responsibility for debts – even if they are more than the assets of the business – is called unlimited liability. In some cases the owner may lose savings or property to pay the business`s debts.



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