Sole proprietorship offers the following pros:

i. Easy to Form:
Proprietary concerns can be formed easily and quickly. Very
few legal formalities need to be fulfilled. There is no need to go
for any registration or enter into an agreement with someone.
One can form it and dissolve it quickly.
ii. Effort-Reward Relationship:
Proprietary ventures give a kick in the belly. You can burn the
candle of energies and make money. You take the risk and get
rewarded. The effort-reward relationship often excites people
to chase creative ideas and turn them into successful ventures.
iii. Full Control:
The owner has full control over everything. He is answerable
to no one else. He decides everything in the best interests of
the business. Right or wrong, he takes charge of the situation.
iv. Quick Decisions:
Proprietors can put things in order quickly if something goes
wrong. If opportunities come his way, he can exploit them
readily. He can give a fat discount to a loyal customer on the
spot if he feels that such a step brings in additional revenues in
future. Small businesses are known for their quick and
effective decisions.
v. Economical and Efficient Operations:
The owner can put resources to best use. He can take steps to
eliminate wastages of all kinds. He can control the cost of
running the show.
vi. Personal Touch:
The owner can bring his skills, knowledge and expertise to the
table. He can play with his ideas and get them going. He can
convert his dreams into concrete realities. He can make things
happen. He can use his brilliance to good advantage.
vii. Keep the Business Simple, Dynamic and Flexible:
The owner can cut everything according to the cloth available.
If there is demand, he can increase the scale and reach. If the
demand is sluggish he can limit orders, reduce stocks and take
measures to save every penny. He can run the show in sync
with changing customers’ tastes and preferences.
viii. Keep the Secrets Close to Heart:
The proprietor need not share business secrets with any one.
He need not place all his cards on the table at any point of
time.
ix. Society Gains as a Whole:
Small ventures benefit society a lot. Ownership is diffused. If
the venture turns successful, it generates employment.
Customers get what they want in nearby places.
Disadvantages of Sole Proprietorship:
Sole proprietorship suffers from the following
drawbacks or cons:

i. Small Size:
By its very nature, proprietary concerns cannot grow big. They
have limited means. They cannot expand operations in a big
way. As a result, they do not enjoy the economies of scale.
Customers, in the final analysis, do not gain from such
miniscule concerns in the long run.
ii. Limited Shelf Life:
You never know when a big Mall will come nearby and kill all
small players. Small businesses have limited life spans. They
exist for a while and disappear within no time if customers
turn into mall rats (shopping always from big malls).
iii. Lacks Professional Skills and Talent:
The proprietor lacks professional skills, talent and expertise.
He has limited knowledge and does not have the ability to
gauze competition, changes in fashions and customer tastes
and preferences, trends in economy etc. He cannot run the
show in a professional way.
iv. See the Big Picture:
His overall knowledge of market, competition, products, tastes
of customers, changes in fashions and trends, general trends
in economy, danger from global firms etc.—is relatively poor.
As a result he might take inappropriate decisions in a hurry,
looking at things from a narrow perspective.
v. Unlimited Liability:
If the small business owner fails, he has to swallow all losses.
The liabilities of a firm might eat away the accumulated wealth
of the owner almost instantaneously. The risk of unlimited
liability forces many a sole proprietor not to expand
operations beyond a point.
vi. Growth Prospects:
Business cannot go beyond a point for a variety of reasons—
limited capital, owner lacks needed skills and competencies
required to run the show on a large scale, unlimited liability
compels many owners to remain small etc. The proprietary
concern, therefore, does not grow to an optimum level and
enjoy the economies of scale.

Advantages of Partnership

 Capital – Due to the nature of the business, the partners

will fund the business with start up capital. This means that
the more partners there are, the more money they can put
into the business, which will allow better flexibility and more
potential for growth. It also means more potential profit,
which will be equally shared between the partners.
 Flexibility – A partnership is generally easier to form,
manage and run. They are less strictly regulated than
companies, in terms of the laws governing the formation
 and because the partners have the only say in the way the
business is run (without interference by shareholders) they
are far more flexible in terms of management, as long as all
the partners can agree.
 Shared Responsibility – Partners can share the
responsibility of the running of the business. This will allow
them to make the most of their abilities. Rather than
splitting the management and taking an equal share of each
business task, they might well split the work according to
their skills. So if one partner is good with figures, they might
deal with the book keeping and accounts, while the other
partner might have a flare for sales and therefore be the
main sales person for the business.
 Decision Making – Partners share the decision making and
can help each other out when they need to. More partners
means more brains that can be picked for business ideas
and for the solving of problems that the business
encounters.
Disadvantages of Partnership

 Disagreements – One of the most obvious disadvantages

of partnership is the danger of disagreements between the
partners. Obviously people are likely to have different ideas
on how the business should be run, who should be doing
what and what the best interests of the business are. This
can lead to disagreements and disputes which might not
only harm the business, but also the relationship of those
involved. This is why it is always advisable to draft a deed
of partnership during the formation period to ensure that
everyone is aware of what procedures will be in place in
case of disagreement and what will happen if the
partnership is dissolved.
 Agreement – Because the partnership is jointly run, it is
necessary that all the partners agree with things that are
being done. This means that in some circumstances there
are less freedoms with regards to the management of the
business. Especially compared to sole traders. However,
there is still more flexibility than with limited companies
where the directors must bow to the will of the members
(shareholders).
 Liability – Ordinary Partnerships are subject to unlimited
liability, which means that each of the partners shares the
liability and financial risks of the business. Which can be off
putting for some people. This can be countered by the
 formation of a limited liability partnership, which benefits
from the advantages of limited liability granted to limited
companies, while still taking advantage of the flexibility of
the partnership model.
 Taxation – One of the major disadvantages of partnership,
taxation laws mean that partners must pay tax in the same
way as sole traders, each submitting a Self Assessment tax
return each year. They are also required to register as self
employed with HM Revenue & Customs. The current laws
mean that if the partnership (and the partners) bring in more
than a certain level, then they are subject to greater levels
of personal taxation than they would be in a limited
company. 

Advantages of company
The important advantages of company form of
ownership are as follows:
1. Limited Liability:
The liability of shareholders, unless and otherwise stated, is
limited to the face value of shares held by them or guarantee
given by them.
2. Perpetual Existence:
Deaths, insanity, insolvency of shareholders or directors do
not affect the company’s existence. A company has a separate
legal entity with perpetual succession.
3. Professional Management:
In company business, the management is in the hands of the
directors who are elected by the shareholders and are well
experienced persons. In order to manage the day-to-day
activities, salaried professional managers are appointed. Thus,
the company business offers professional management.
4. Expansion Potential:
As there is no limit to the maximum number of shareholders
in a public limited company, expansion of business is easy by
issuing new shares and debentures. Companies normally use
their reserves for expansion purposes.
5. Transferability of Shares:
If the shareholders of a company are displeased with the
progress of the business, they can sell their shares any time.
During all this change of ownership, the business continues to
operate.
6. Diffusion of Risk:
As the membership is very large, the whole business risk is
divided among the several members of the company. This is an
advantage particularly for small investors.

Disadvantages:
In spite of its several advantages, the company form
of ownership also suffers from some disadvantages.
1. Lack of Secrecy:
As per the legal provisions, a company has to make various
statements available to the Registrar of the Companies,
Financial Institutions; the secrecy of business comes down. It
is further reduced when the company provides its annual
report to the shareholders as the competitors do also find out
the details of all financial data.
2. Restrictions:
Compared to proprietorship and partnership, a company has
to comply with more legal requirements. It consumes
considerable time and effort.
3. Management Mischief’s:

Sometimes the managers and directors misuse the company

resources for their personal benefits. This brings losses to the
company and company is closed.
4. Lack of Personal Interest:
Unlike proprietorship and partnership, the day-to-day affairs
of a company are looked after by salaried managers. Since they
are the employees not the owners, they do have hardly any
personal interest and commitment in the company. This may
result in inefficiency and, in turn, losses.

Disadvantages of a company include that:

 the company can be expensive to establish, maintain and wind up
 the reporting requirements can be complex
 your financial affairs are public
 if directors fail to meet their legal obligations, they may be held
personally liable for the company's debts
 profits distributed to shareholders are taxable.
Question No 2:
1. Content Writing – Zero Investment Business Idea
All you need for it is a laptop along with internet access or simply a pen and paper.
Couple with your skill in writing! It is a Zero Investment business. It may be adopted
as a Part-Time or full-time job.

The progress is gradual in this kind of business but proves to be profitable in the long
run! Pakistani women have been taking up this kind of businesses seriously lately as
they can support their family from the comfort of their home in this way.

2. Editing And Proof Reading – Innovative Business Idea

It is a simpler job than content writing as it involves no self-innovation but rechecking
of what has already been written. So if you are a good reader and have strong
command over language then you should go for this Zero Investment business.

3. Ghost Writing – Small Business Ideas

It is the same as content writing but the name of the writer does not appear. The
writing is published or used by the name of the employer. It can be viewed as a small
business idea for students who need a part-time job to support themselves.

4. Blogging – Best Online Business in Pakistan

Blogging has been trending lately. And it has proved to be a very profitable, low
investment business in Pakistan. Whether it be a beauty blog or a fashion blog,
health blog or technology blog it always attracts corresponding companies and firms
to benefit from.

5. Freelancing
Freelancing is working on a contract basis for a variety of companies, as opposed to
working as an employee for a single company. Freelancers are often considered to be
self-employed and have the freedom to pick and choose their projects and
companies they would like to be associated with.

Question no 3:
 op Five Advantages of Being
an Entrepreneur
Advantage #1: A flexible schedule – both in terms of
when and where you work.

One of the best things and biggest advantages of being an entrepreneur is

you can work from home, work from the office (if you have one), and

work from virtually any destination with a great view and a glass of wine in
your hand!

In the past year, I’ve been to Santorini, Greece, Venice + Rome +

Florence in Italy, Quito in Ecuador, the Galapagos Islands, Charleston

S.C.,  Marco Island (a few times), and quite a few places in Michigan!  This
would likely not occur if I had a “regular” job.

You can also choose when you work. If you want to stay up late, stay up
late. If you want to get up early, get up early.  The flexibility of having

your own business cannot be beat! It remains, in my opinion, as one of

the best advantages of being an entrepreneur. It is hard to come by this

amount of flexibility in any other job!

Advantage #2: You learn a lot!

Not just about your field, but about accounting, marketing, public
speaking, website design, search engine optimization, how to delegate,

how to take risks, how to be more creative and think about problems in
other ways. And, importantly, how to fail, how to be rejected, and how to
get back up on your feet anyway.

I have always been attracted to business because it seems like such a

unique and diversified set of skills that are required to truly succeed.

Meaning, there are things like . . . setting up a website, marketing, getting

appointments with clients, and delegation.

This is one of the advantages of being an entrepreneur that I overlooked

in the beginning. I figured I knew what I was doing and that even if I

didn’t, I could figure it out without falling down too many times. But I was
wrong. And very grateful for it.

Advantage #3: It’s exciting and fulfilling.

It is exciting to build something from the ground up. Especially when you

love what you do. It is such a cool feeling to make something out of
nothing. And it is so fun to hire awesome people to work for the company.
And to have amazing clients, many of whom are not only paying
customers, but also friends!

The ups and downs are neverending. It is never boring. It is my third year
and I still have a rollercoasterish feeling when I start a new project or

when we fulfill a new idea.

This is another one of the advantages of being an entrepreneur that I

thought would disappear over time. So far, it hasn’t. It is just as exciting to

own a business on Day 1000 that it was on Day 1.

Advantage #4: The salary makes sense.

When you make money, you get paid more. It is not an arbitrary number
that you are being paid each year. And you don’t have to wait for someone

to give you a raise.

You get to keep the profits. You pay the expenses. And if you are doing it

right, this will end up being a good deal.

Advantage #5: You are viewed as a leader.

This increases confidence. People say “you have a brilliant business model”
and all sorts of other compliments that are very nice. And to be honest,

ones I am not sure I have truly earned. But it is a very nice side benefit!

For every advantage, there is a disadvantage. . .

Top Five Disadvantages of

Being an Entrepreneur
Disadvantage #1: You wear a lot of hats. 

You are not just the owner of the company. You are the CEO, secretary,

website designer, accountant, head of marketing, and janitor. That is, until
you can afford to delegate this to contractors and employees. And then

you take on the title of “employer” which, true, replaces some of these
other titles, but also brings a whole new set of benefits and challenges to

the table.

So true, while you learn a lot as an entrepreneur, it is because you do a

lot. There is a lot to juggle at once. Which brings me to my next point  . . .

Disadvantage #2: You are always at work.

 It is true you can work from anywhere and at any time. But really that is

because you are working everywhere at all times! I have heard it said that
entrepreneurs “beat 9-5 to work 9-9.” There some truth to that. You are

always on call and always doing something for the company. Even now, I
am writing this from a lovely suite in bay city overlooking the water. . . . at

6:00 AM in my hotel-bathroom-counter-converted-into-makeshift-desk so
that I do not awake my spouse! If you love what you do, then it does not

seem so bad! (And in the end I think that is how entrepreneurs truly
survive – believing in their vision and loving their work!)

But still, it is one of the exhausting parts of entrepreneurship that others

may not readily see.

And this, of course, leads to the next disadvantage . . .

Disadvantage #3: Work-life balance becomes tricky and

is sometimes non-existent.

Work-life balance becomes tricky. It is hard to draw a line between “work”

and “life” when you work from home. When your office is not that-place-a-
few-miles-away but is instead your bedroom, your living room, your room,

your home office.

Your personal phone is your work phone (even if you have a work phone).

Same with personal email. And personal time (remember, you are always
on-call….).
 This doesn’t mean you can’t place limits on work-life balance. Or draw a
line. Or not check your emails after 7:00. Or not work on Sunday

mornings. And it is not to say it is not a challenge for other professions. (I

distinctly remember having the same problem when I was a lawyer full

time.) However, it does seem to be exaggerated for entrepreneurs.

Disadvantage #4: A non-regular paycheck can be scary. 

If your company doesn’t make money, you don’t make money. So in some
ways while the salary is “rationale” – you get what you bring in – in other

ways, it is not. Because you can work 50 hours a week and make nothing.
This is both liberating and terrifying.

Disadvantage #5: You will feel a new kind of stress.

Entrepreneurial ventures can bring about a new kind of stress. Instead of

an employee, you are responsible for all decisions. If you fail or succeed,
customers, vendors, employees, and others are looking at you. So just as

you can be looked at as a “leader” (Advantage 5 above), you can also be

looked as a fool.

Stress can be heightened if you do not make a consistent income. Or if

you don’t have health insurance. Or if you don’t feel your self-employment

is especially “secure.”