which sentences describe characteristics of a sole proprietorship?
1. What are the characteristics of sole proprietorships, partnerships and limited companies? What are the advantages and disadvantages of each type of business? Sole proprietorships. A sole proprietorship is a business that is run by a single individual who makes all the decisions, although the proprietor may engage employees. The sole proprietor is personally entitled to all of the profits and is responsible for any debts that the company incurs. Advantages of forming a sole proprietorship. 1  Sole proprietorship is the simplest and most flexible business structure. 2  The sole proprietor has total control and full decision-making power over policies, profits and capital investment. 3  It is easy to close down the business.