List and briefly explain the advantages and disadvantages of a sole proprietorship

What will be an ideal response?

There are several major advantages to operating a business as a sole proprietorship. They include the following:
a. Forming a sole proprietorship is easy and does not cost a lot.
b. The owner has the right to make all management decisions concerning the business, including those involving hiring and firing employees.
c. The sole proprietor owns all of the business and has the right to receive all of the business's profits.
d. A sole proprietorship can be easily transferred or sold if and when the owner desires to do so; no other approval is necessary.
There are important disadvantages to this business form, too. For example, a sole proprietor's access to the capital is limited to personal funds plus any loans he or she can obtain, and a sole proprietor is legally responsible for the business's contracts and the torts he or she or any of his or her employees commit in the course of employment.