A sole proprietorships is a business owned by one person who operates it for his or her own profit. About 75 percent of all business firms are sole proprietorships. The typical sole proprietorship is a small firm, such as a neighborhood grocery, auto-repair shop, or shoe-repair business. Typically, the proprietor, along with a few employees, operates the proprietorship. He or she normally raises capital from personal resources or by borrowing and is responsible for all business decisions. The sole proprietor has unlimited liability, which means that his or her total wealth, not merely the amount originally invested, can be taken to satisfy creditors. The majority of sole proprietorships are found in the wholesale, retail, service, and construction industries. The key strengths and weaknesses of sole proprietorships are summarized in Table 1.3.