After reading this article you will learn about the limitations of sole proprietorship with measures to overcome it. Limitations of Sole Proprietorship: When the business of a sole trader continues to expand, he has to face the following limitations: 1. Lack of Capital: As the sole proprietor has got a limited capital which he has already invested in the business, [...]
A sole trading business is started on a small scale. With the passage of time, the business expands and faces additional problems of capital and management of business. Under such circumstances two alternative options are open to him, which are as follows: (a) To take a partner (b) To engage an assistant or servant. Option # 1. Taking a Partner: [...]
After reading this article you will learn about:- 1. Meaning and Definition of Partnership 2. Need of Partnership 3. Characteristics or Features or Elements. Meaning and Definition of Partnership: Partnership is an association of two or more persons who agree to carry on a lawful business in common with the object of sharing in partnership. The partners provide the capital [...]