Difficult to Develop Due to Limited Capital

Difficult to Develop Due to Limited Capital
A single commerce or a single milikan trade is the most basic business entity which only involves an individual as the owner. This type of commerce is easy to establish, does not require large capital but is difficult to develop. A single trade will dissolve by itself if the owner dies. A single commerce will also disperse if the owner no longer carries out the trade.
For example, if a business makes a profit, the profit is the owner's personal property. Conversely, if the business suffers a loss, the loss is also the loss or loss of the owner's property. Thus, in a single milikan trade, the owner's liability is unlimited. This means, if the merchant has indefinable debts due to a loss, the creditor has the right to claim the private property of the owner of the trade as compensation for the non-serviced commercial debt.

The merits and weaknesses of a single commerce can be summarized as follows: -
The virtues of a single commerce
Easy to set up
The owner has the absolute power to oversee the commerce
Any decision involving commerce can be decided immediately because the owner does not need to refer to or talk with others
Excise tax structure based on individual opinion (owner) excise
Does not require complex financial statements.
Single commercial weaknesses

Difficult to develop due to limited capital
It is difficult to get capital financing because investors are more likely to invest in more stable institutions and financial institutions also require a firm guarantee rather than commerce
Liabiliti is not limited
Commerce will automatically disperse if the owner dies.

Example of Sole Proprietorship
Commerce shop distended
The stitch shop
Coffee / food shop business or restaurant
Hawker moves
 Pegerai, and so on.

Commercialization of partnership
Commercial partnership is established if capital is combined and a partnership between at least two joint partners applies. In a commercial venture like this, all joint venture partners are joint owners who will share any profits or risks. In connection with that, in the establishment of a partnership there are several characteristics that need to be taken to know which is the pillar of the establishment of a partnership.

Partnership agreement
The reality of a partnership is the result of several agreements made. A partnership agreement is necessary for a partnership to take care of a travel arrangement for a partnership. A partnership agreement is also a bond agreement to start the partnership. In this association, several cases have been determined, such as the rights of each worker, the obligation and responsibility of each worker.
A partnership agreement has a specific purpose, which is to avoid any misunderstanding that might arise between the people in the future and ensure that each person plays a role as agreed in the agreement. Accordingly, there are several details contained in the partnership agreement.