Paper 2 · sole proprietor
An advantage of operating an enterprise as a sole proprietor is that
Adecisions can be taken quickly because nobody else has to be consulted.
Bthe enterprise continues to trade in its own name after the owner has died.
Cthe enterprise can raise capital by offering shares to the general public.
Dthe owner's personal property is protected if the enterprise cannot pay.
Explanation: A sole proprietor answers to nobody, so a decision can be made and acted on immediately, and the owner also keeps all the profit and enjoys complete privacy. The other three options describe a company: only a company has a separate legal identity, can issue shares to the public and gives its owners limited liability.
Derived from ZIMSEC Business Enterprise Skills Paper 2, Nov 2021, Q1