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What are proprietary firms?
Organizations are carried on with an intention of earning profit. There are various forms of business organization, one of which is Proprietary firm. It is the firm where the ownership and management of business are in control of one individual, who is called proprietor. He is directly liable for the losses or debts of the firm as well as for the profits earned by the firm. All the decisions of the firm are taken by him. In proprietary firm the entire capital is provided by the owner of the firm. Proprietary firm is also known as sole proprietorship as the number of person managing the business is one. The proprietor and the business are one in the eyes of law. The business ceases to exist in the absence of the owner. Proprietary firms need not to fulfill legal formalities to start up the business except in few cases. Grocery store, stationery store, vegetable store, sweets shop etc. are the few examples of sole proprietorship.
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