the business of sole proprietorship is expanding should he appoint a manager admit a partner into the business. give reasons

Dear Student,

For the expansion of a sole proprietorship business, appointing a manager is more suitable as compared to admitting a partner. This is because if the sole proprietor will appoint a manager, the manager would not share the ownership and control of the business. Also, the profits will not be divided as he will be appointed at a particular salary. In such case, all the merits of sole proprietorship shall prevail, such as, quick decision making, secrecy of information, flexibility in operations etc.

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