Get premium membership and access questions with answers, video lessons as well as revision papers.
Has unlimited liability.This means that if the assets available in the business are not enough to pay all the business debt,personal property of the owner such as house may be sold to pay the debts.
Expansion of the business may be limited by scarcity of capital.
A sole proprietor may work for long hours thereby leaving little time for recreation.
if a sole trader fall sick, the business may experience of difficulties due to lack of adequate management.
Lack of consultation may lead to poor decision making hence affecting the business adversely.
A sole proprietorship may not benefit from advantages realized by large scale enterprise(economies of large scale) such as access to loan facilities and large trade discounts.
Death of the owner may lead to collapse or poor performance of the business arising from poor management by other people who take over the business.
Lack of specialization in the running of the business may lead to the poor performance. This is because one person cannot manage all aspects of the business effectively. one may be a good sale person, for example,but a poor accountant.
The owner bears all the risk and in case of a loss, he\she suffers alone.
Mohaissack answered the question on November 11, 2017 at 07:03
- Explain four objectives of communication skills(Solved)
Explain four objectives of communication skills
Date posted: November 10, 2017. Answers (1)
- Outline functions of the world bank(Solved)
Outline functions of the world bank
Date posted: November 9, 2017. Answers (1)
- Imagine you have collected your form four national examinations results, you have passed very well. Write a thank you note to your class teacher(Solved)
Imagine you have collected your form four national examinations results, you have passed very well. Write a thank you note to your class teacher
Date posted: November 9, 2017. Answers (1)
- Explain five reasons why the insured may not be compensated despite suffering a loss (Solved)
Explain five reasons why the insured may not be compensated despite suffering a loss
Date posted: November 9, 2017. Answers (1)
- Highlights five benefits of sending letters and parcels by courier services(Solved)
Highlights five benefits of sending letters and parcels by courier services
Date posted: November 9, 2017. Answers (1)
- Explain five reasons why Kenya may restrict trade with other countries(Solved)
Explain five reasons why Kenya may restrict trade with other countries
Date posted: November 9, 2017. Answers (1)
- Explain six monetary policies that the government can use to curb inflation (Solved)
Explain six monetary policies that the government can use to curb inflation
Date posted: November 9, 2017. Answers (1)
- Outline four dangers of comparing living standards in different countries using national income statistics.(Solved)
Outline four dangers of comparing living standards in different countries using national income statistics.
Date posted: November 9, 2017. Answers (1)
- Outline four advantages of using e-mail in communication(Solved)
Outline four advantages of using e-mail in communication
Date posted: November 9, 2017. Answers (1)
- Give four factors that one should consider when choosing a means of transport(Solved)
Give four factors that one should consider when choosing a means of transport
Date posted: November 9, 2017. Answers (1)
- State four factors that determine the choice of human wants to be satisfied(Solved)
State four factors that determine the choice of human wants to be satisfied
Date posted: November 9, 2017. Answers (1)
- Explain the factors that influence land rents(Solved)
Explain the factors that influence land rents
Date posted: November 9, 2017. Answers (1)
- Third world countries are not developing because they are busy copy pasting countries ahead of them. What do you think should be done in third world...(Solved)
Third world countries are not developing because they are busy copy pasting countries ahead of them. What do you think should be done in third world countries for them to develop?
Date posted: November 9, 2017. Answers (1)
- Describe problems related to technologies in trade and industry(Solved)
Describe problems related to technologies in trade and industry
Date posted: November 6, 2017. Answers (1)
- As Kenya’s economy strives to do well, most Kenyans are bound to live beyond 70 years. Outline four negative effects of an ageing population...(Solved)
As Kenya’s economy strives to do well, most Kenyans are bound to live beyond 70 years. Outline four negative effects of an ageing population to Kenya’s economy.
Date posted: November 6, 2017. Answers (1)
- Outline four circumstances under which a bill of exchange may be preferred as means of payment.(Solved)
Outline four circumstances under which a bill of exchange may be preferred as means of payment.
Date posted: November 6, 2017. Answers (1)
- Outline four benefits of a self-service shop to a customer(Solved)
Outline four benefits of a self-service shop to a customer.
Date posted: November 6, 2017. Answers (1)
- Highlight four reasons why the Kenya government has decided to control the exploitation of her natural resources. (Solved)
Highlight four reasons why the Kenya government has decided to control the exploitation of her natural resources.
Date posted: November 6, 2017. Answers (1)
- Factors that influence location of business enterprise (Solved)
Factors that influence location of business enterprise
Date posted: November 3, 2017. Answers (1)
- Problems facing Saccos and their solutions(Solved)
Problems facing Saccos and their solutions
Date posted: November 2, 2017. Answers (1)