What is a sole proprietor and should management make decisions to maximize shareholders wealth over their...
What is a sole proprietor and should management make decisions to maximize shareholders wealth over their own personal gain in a sole proprietorship?
Homework Answers
A sole proprietorship, also known as the sole trader, individual entrepreneurship or proprietorship, is a type of enterprise that is owned and run by one person and in which there is no legal distinction between the owner and the business entity.
A sole Trader is personally liable for the Liabilities of his business.
As Management & Shareholders are same in a sole trader business, they will definitely look for wealth maximisation of the shareholder as they were looking for their own wealth creation.
Own personal Gain also belongs to the management or shareholder, so there will be no over keeping own personal gain in a sole proprietorship.
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What is a sole proprietor and should management make decisions
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