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    Preference for a sole proprietorship as business form

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    Why would entrepreneurs open themselves up to personal financial losses by choosing a proprietorship rather than a company form of an organization?

    Please include at least one source.

    © BrainMass Inc. brainmass.com October 2, 2020, 12:31 am ad1c9bdddf

    Solution Preview

    There are a number of reasons why an individual would choose a sole proprietorship as a legal form of doing business:

    1. People who start businesses are usually certain they will be successful. It stands to reason because who would start a business that they think will fail?

    2. It is the simplest form of business and doesn't require ...

    Solution Summary

    The solution provides seven reasons why a new business might prefer the sole proprierotor format. Each reason is presented in a sentence or two. A reference is included.