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What are the advantages and disadvantages of proprietary firms?
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Answer Posted / Ayoosh Kumar Sharivastava
Advantages: 1. Limited Liability - Owners' personal assets are protected if the business incurs debt or legal issues. 2. Easy to form and manage. Disadvantages: 1. Single Life - The firm ceases to exist upon death or withdrawal of the owner(s). 2. Difficulty in raising capital compared to joint-stock companies.
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