Sole proprietorship
Sole proprietorship (or, simply, proprietorship) is a type of business organization that has one owner who assumes unlimited liability. That means that this owner is personally liable for paying the business' debt.
Definitions
According to College Accounting: A Practical Approach by Slater (13th edition),
- Sole proprietorship. A type of business organization that has one owner. This owner is personally liable for paying the business' debt.
According to Fundamentals of Financial Management by Eugene F. Brigham and Joel F. Houston (15th edition),
- Proprietorship. An unincorporated business owned by one individual.
According to Management by Robbins and Coulter (14th edition),
- Sole proprietorship. A form of legal organization in which the owner maintains sole and complete control over the business and is personally liable for business debts.
Related concepts
- Bookkeeping. Recording, filing, and retrieving of financial data, as well as producing those financial reports that are required by laws.
