Assignments (Sole Proprietorship)

1. Complete sentences.

risks

charter

loan guarantees

private company

registration license

unlimited liability

owner's Capital

an expert

sole proprietor

pay debts

1. You automatically become a sole proprietor by starting up a business on you own.

2. The money which shareholders invest in the business is the owner's Capital.

3. If you have a private company you can only lose the amount of money you have invested in the business.

4. Registration license ensures that two firms do not use the same name.

5. Major policies can be changed according to the owner's wishes because the firm does not operate under a charter.

6. The sole proprietor often has to rely on friends, relatives and government agencies for loan guarantees.

7. A sole trader is a person who owns business and carries the risks that may be involved.

8. You are liable for all the debts of the business and this is called unlimited liability.

9. It's difficult to be an expert in all the different aspects of the business, e.g. finance, marketing, etc.

10. The owner must pay debts from his own pocket.