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Forum 1 Name Institution Forum 1 A proprietorship is an unincorporated structure of doing business that is run and owned by a single investor with no input from others thereby ensuring that there is no clear distinction between the business owner and the business itself. As such, the sole proprietor is responsible for any and all liabilities, losses and debts associated with the business, as well as being entitled to all the profits. The opportunity to be in control acts as a strong motivator for sole proprietors, making them disregard the possibility of financial losses associated with their form of business, a risk that is minimized in a company (Trevino & Nelson, 2011). The major motivator for sole proprietors is the ease of starting such a venture. It involves very little paperwork and can be set up within a short period of time thereby making it very popular. In fact, they are not restricted by rules that govern other forms of businesses. In addition, there is greater autonomy and faster decision making without the need to consult or even report to a management board, shareholders, or partners. In fact, the sole proprietor gets to control all the decisions concerning earnings and expenditure. Besides that, a sole proprietor can receive tax benefits by reporting earnings through personal income earnings and as personal tax returns. This is the better option when compared to reporting for business tax returns that is slower and more costly (Trevino & Nelson, 2011). Also, there is no need to prepare comprehensive accounting books for the business, such as annual financial reports, since the business owner is involved in management and is aware of all

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