Total Sales Receipts of American Bu

Total Sales Receipts of American Businesses
Advantages of Sole Proprietorships
Most of the advantages of sole proprietorships arise from the two main characteristics
of this form of ownership: simplicity and individual control.
Ease of Start-Up and Closure Sole proprietorship is the simplest and cheapest
way to start a business. Often, start-up requires no contracts, agreements, or other legal
documents. Thus, a sole proprietorship can be, and most often is, established without
the services of an attorney. The legal requirements often are limited to registering the
name of the business and obtaining any necessary licenses or permits.
If the enterprise does not succeed, the firm can be closed as
easily as it was opened. Creditors must be paid, of course, but generally,
the owner does not have to go through any legal procedure
before hanging up an “Out of Business” sign.
Pride of Ownership A successful sole proprietor is often very
proud of her or his accomplishments—and rightfully so. In almost
every case, the owner deserves a great deal of credit for solving the
day-to-day problems associated with operating a sole proprietorship.
Unfortunately, the reverse is also true. When the business fails,
it is often the sole proprietor who is to blame.
Retention of All Profits Because all profits become the personal
earnings of the owner, the owner has a strong incentive to succeed.
This direct financial reward attracts many entrepreneurs to the sole
proprietorship form of business and, if the business succeeds, is a
source of great satisfaction.
No Special Taxes Profits earned by a sole proprietorship are
taxed as the personal income of the owner. As a result, sole proprietors
must report certain financial information for the business on
their personal income tax returns and make estimated quarterly tax
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payments to the federal government. Thus, a sole proprietorship
does not pay the special state and federal
income taxes that corporations pay.
Flexibility of Being Your Own Boss A sole proprietor
is completely free to make decisions about
the firm’s operations. Without asking or waiting for
anyone’s approval, a sole proprietor can switch from
retailing to wholesaling, move a shop’s location, open
a new store, or close an old one. Suppose that the sole proprietor
of an appliance store finds that many customers now
prefer to shop on Sunday afternoons. He or she can make an
immediate change in business hours to take advantage of this
information (provided that state laws allow such stores to
open on Sunday). The manager of a store in a large corporate
chain such as Best Buy Company may have to seek the
approval of numerous managers and company officials before
making such a change.
Disadvantages of Sole Proprietorships
The disadvantages of a sole proprietorship stem from the
fact that these businesses are owned by one person. Some
capable sole proprietors experience no problems. Individuals who start out with few
management skills and little money are most at risk for failure.
Unlimited Liability Unlimited liability is a legal concept that holds a business
owner personally responsible for all the debts of the business. There is legally no difference
between the debts of the business and the debts of the proprietor. If the business
fails, or if the business is involved in a lawsuit and loses, the owner’s personal
property—including savings and other assets—can be seized (and sold if necessary)
to pay creditors.
Unlimited liability is perhaps the major factor that tends to discourage would-be
entrepreneurs with substantial personal wealth from using the sole proprietor form of
business organization.
Lack of Continuity Legally, the sole proprietor is the business. If the owner
retires, dies, or is declared legally incompetent, the business essentially ceases to
exist. In many cases, however—especially when the business is a profitable enterprise—
the owner’s heirs take it over and either sell it or continue to operate it. The
business also can suffer if the sole proprietor becomes ill and cannot work for an
extended period of time. If the owner, for example, has a heart attack, there is often
no one who can step in and manage the business. An illness can be devastating if
the sole proprietor’s personal skills are what determine if the business is a success
or a failure.
Lack of Money Banks, suppliers, and other lenders usually are unwilling to lend large
sums of money to sole proprietorships. Only one person—the sole proprietor—can be
held responsible for repaying such loans, and the assets of most sole proprietors usually
are limited. Moreover, these assets may have been used already as security or collateral
for personal borrowing (a home mortgage or car loan) or for short-term credit from
suppliers. Lenders also worry about the lack of continuity of sole proprietorships: Who
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Hasil (Bahasa Indonesia) 1:

Total Sales Receipts of American BusinessesAdvantages of Sole ProprietorshipsMost of the advantages of sole proprietorships arise from the two main characteristicsof this form of ownership: simplicity and individual control.Ease of Start-Up and Closure Sole proprietorship is the simplest and cheapestway to start a business. Often, start-up requires no contracts, agreements, or other legaldocuments. Thus, a sole proprietorship can be, and most often is, established withoutthe services of an attorney. The legal requirements often are limited to registering thename of the business and obtaining any necessary licenses or permits.If the enterprise does not succeed, the firm can be closed aseasily as it was opened. Creditors must be paid, of course, but generally,the owner does not have to go through any legal procedurebefore hanging up an “Out of Business” sign.Pride of Ownership A successful sole proprietor is often veryproud of her or his accomplishments—and rightfully so. In almostevery case, the owner deserves a great deal of credit for solving theday-to-day problems associated with operating a sole proprietorship.Unfortunately, the reverse is also true. When the business fails,it is often the sole proprietor who is to blame.Retention of All Profits Because all profits become the personalearnings of the owner, the owner has a strong incentive to succeed.This direct financial reward attracts many entrepreneurs to the soleproprietorship form of business and, if the business succeeds, is asource of great satisfaction.No Special Taxes Profits earned by a sole proprietorship aretaxed as the personal income of the owner. As a result, sole proprietorsmust report certain financial information for the business ontheir personal income tax returns and make estimated quarterly tax107payments to the federal government. Thus, a sole proprietorshipdoes not pay the special state and federalincome taxes that corporations pay.Flexibility of Being Your Own Boss A sole proprietoris completely free to make decisions aboutthe firm’s operations. Without asking or waiting foranyone’s approval, a sole proprietor can switch fromretailing to wholesaling, move a shop’s location, opena new store, or close an old one. Suppose that the sole proprietorof an appliance store finds that many customers nowprefer to shop on Sunday afternoons. He or she can make animmediate change in business hours to take advantage of thisinformation (provided that state laws allow such stores toopen on Sunday). The manager of a store in a large corporatechain such as Best Buy Company may have to seek theapproval of numerous managers and company officials beforemaking such a change.Disadvantages of Sole ProprietorshipsThe disadvantages of a sole proprietorship stem from thefact that these businesses are owned by one person. Somecapable sole proprietors experience no problems. Individuals who start out with fewketerampilan manajemen dan sedikit uang yang paling berisiko untuk kegagalan.Perseroan terbatas kewajiban adalah sebuah konsep hukum yang memegang bisnispemilik secara pribadi bertanggung jawab untuk semua hutang usaha. Secara hukum tidak ada perbedaanantara hutang usaha dan hutang pemilik. Jika bisnisgagal, atau jika bisnis terlibat dalam gugatan dan kehilangan, pemilik pribadiProperti — termasuk tabungan dan aset lainnya — dapat disita (dan dijual jika diperlukan)membayar kreditur.Perseroan mungkin adalah faktor utama yang cenderung untuk mencegah calonPengusaha dengan kekayaan pribadi yang cukup besar dari menggunakan bentuk pemilik tunggalorganisasi bisnis.Kurangnya kesinambungan secara hukum, pemilik tunggal adalah bisnis. Jika pemilikpensiun, meninggal atau adalah menyatakan secara hukum tidak kompeten, bisnis pada dasarnya berhentiada. Dalam banyak kasus, namun — terutama ketika bisnis adalah sebuah perusahaan yang menguntungkan —waris-waris pemilik yang mengambil alih dan menjualnya atau terus beroperasi. Thebisnis juga dapat menderita jika pemilik tunggal menjadi sakit dan tidak dapat bekerja untukjangka waktu. Jika pemilik, misalnya, memiliki serangan jantung, sering adatidak ada orang yang dapat melangkah masuk dan mengelola bisnis. Penyakit dapat menghancurkan jikaketerampilan pribadi pemilik tunggal adalah apa yang menentukan apakah bisnis suksesatau kegagalan.Kurangnya uang bank, pemasok dan pemberi pinjaman lain biasanya tidak mau meminjamkan besarjumlah uang untuk kepemilikan tunggal. Orang hanya satu-satunya pemilik — dapatbertanggung jawab untuk membayar pinjaman tersebut, dan aset dari kebanyakan pemilik tunggal biasanyaterbatas. Selain itu, aset-aset ini mungkin telah digunakan sudah sebagai jaminan atau kolateraluntuk pinjaman pribadi (hipotek atau mobil pinjaman rumah) atau untuk kredit jangka pendek daripemasok. Lender juga khawatir tentang kurangnya kelangsungan kepemilikan tunggal: yang108