Benefits and Risks of A Sole Proprietorship

Benefits and Risks of A Sole Proprietorship
Name
Department, Institution Affiliation
Course Code; Course Name
Instructor’s Name
Date
Benefits and Risks of A Sole Proprietorship
A sole proprietorship refers to a business setting operated by one person. The sports therapy clinic will enjoy multiple benefits if operated as a sole proprietorship. First, sole proprietorships are easy to establish. Running the sports therapy clinic as a sole proprietorship is easy since few legal requirements are involved. Unlike partnerships where many people with different mindsets are involved and convincing them is hard, sole proprietorships follow a few steps. The sports therapy clinic will start providing profits within a few days or months. Second, operating the clinic as a sole proprietorship will simplify decision-making. In case of any issue that might bring losses to the enterprise, the sole proprietor will review the situation and make decisions accordingly (Peluso, 2019). Third, sole proprietors enjoy all profits from the business, unlike partnerships where profits are shared among partners. The sole proprietor will enjoy all profits from the clinic, encouraging th...