Answer :

Final answer:

An entrepreneur opening a sole proprietorship is typically a self-starter, hardworking and willing to take risks. They handle all management aspects and financial decisions, including obtaining capital and dealing with liabilities. The structure offers ease of management and profit retention but comes with unlimited liability risks.

Explanation:

An entrepreneur who opens a sole proprietorship displays several key characteristics. They are typically self-starters, independent minded, hardworking, and willing to take risks due to the nature of this business structure. Since the owner of a sole proprietorship is not distinct from their business, they assume complete responsibility for debts and liabilities, as well as reap all the profits. This form of business requires the proprietor to manage all aspects, from hiring and managing employees to dealing with inventory and making business strategy decisions. Entrepreneurs must also be ready to manage their business's financial aspects, which may include obtaining capital through loans and handling any legal risks that come with not having a separate corporate entity.

The advantages of this business structure often include ease of management, retaining all the profits, and not having to pay special taxes, just the tax on the income generated by the business. However, the main concern of a sole proprietorship is the unlimited liability, meaning that personal assets are at risk if the business incurs debt or is sued. Entrepreneurs must be prepared to assume these responsibilities and potential consequences in order to enjoy the flexibility and control that come with operating a sole proprietorship.

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