The Pros and Cons of Antonia's Sole Proprietorship Business

As a cabinetmaker running her own business, Antonia operates as a sole proprietorship. This means that she is the sole owner of the business and is personally responsible for its profits and debts. Let's take a closer look at the advantages and disadvantages of Antonia's business structure:

Benefits of Sole Proprietorship:

Total Control: Antonia has complete control over decision-making in her business. She can make choices quickly and doesn't have to consult with partners or shareholders.

Drawbacks of Sole Proprietorship:

Total Liability: One major drawback of a sole proprietorship is that Antonia is personally liable for all debts and obligations of the business. This means that her personal assets, such as savings or home, could be at risk if the business runs into financial trouble.

While Antonia enjoys the freedom of making decisions on her own, she needs to be aware of the risks involved in terms of personal liability. It is important for her to carefully manage finances and consider options for protecting her personal assets, such as obtaining business insurance.