‘One man control is the best in the world if that man is big enough to manage everything’. Explain the statement
It is right to say that one man control is the best in the world if that man is big enough to manage everything, because of the following reasons:
1.Easy to form and dissolve : A sole proprietorship organisation is easy to form. The sole proprietor can close the business whenever he desires without any legal formality. It can be closed by paying back its debts.
2.Motivation : In a sole proprietorship firm, there is a direct relation between the efforts and rewards, which means if a proprietor puts extra efforts, then his profit increases and the proprietor gets extra income.
3.Flexibility : In a sole proprietorship firm, all decisions are taken by the proprietor himself. So there is flexibility.
4.Sole beneficiary of profits : All the profits earned by the sole proprietorship firm belong solely to the proprietor.
5.Personal touch : In a sole proprietorship firm, generally all the work is carried out by the proprietor himself.
6.Secrecy : The sole proprietor is not expected to share his secrets with others.