The Role of a Proprietor
Proprietors are individuals who are given the exclusive rights and titles to a particular investment, like that of a business. With this exclusive title, the proprietors are able to conduct business under their own set of guidelines. They are allowed to hire individuals for work, create clientele bases, establish working relationships, and various other things.
The downside of proprietorship is that these individuals are legally responsible for all of the actions and dealings of the business venture. For example, if a business requires a new building in order to expand and become more prosperous, the proprietor can take out a loan for the new building under the name of the company and continue to expand. However, as the debt is that of the company, it is also the debt of the proprietors. Thus, the proprietors have to pay the debt back or legal action befalls them personally.
With proprietorship the individuals who are the proprietors have more control over the individual assets and how the finances are utilized. This makes the business malleable under the hands of those in charge and makes it a tailored investment to the proprietors. With larger companies, individuals do not always have a say in what happens with finances and what areas need to be refined.
Furthermore, proprietors pay significantly less when it comes to running their businesses than big businesses do. This means that more of the overall revenue goes directly to the proprietors and the business instead of being taxed or taken away in some other form.
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