“You have sole ownership of your vision and the Universe will give you what you want within your vision” by informationmaker.blogspot.com

“You have sole ownership of your vision and the Universe will give you what you want within your vision”

Sole Tradership

Sole proprietorship or individual proprietorship is the simplest oldest and in some respect the most natural form of business organization in the private sector. When the mankind merged out of the stone era, he was referred as “Homo Sapiens” who started business in sloe ownership. In this form a single individual is solely responsible for providing the capital, for bearing the risks and for the overall management and control of the enterprise. It is a one-man show owned, financed and operated by one person. The leading feature of this kind of concern is that the individual assumes full responsibility for the risks connected with the conduct of the also considered organizer and manager. He takes all the profits or responsibility for losses of the business.

“It is the simplest form of business which is owned and controlled by one man”

Or

“Sole proprietorship is a type of business organization in which one person owns and operates a business”

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Example of Sole Tradership                                

Retailer                                                                            Tourist Guide

Carpenter                                                                         Beauty Parlor

Barber                                                                              Doctor or Accountant etc.

Shoe Service Shop                                                           Petrol Pumps

Restaurant                                                                        Painters

Characteristics of Sole Tradership / Merits of Sole Business

Small Size, door step services, limited life, success of business, secrecy, easily transferable business to another, easy dissolution, earn profit only one, unlimited liability, legal restriction, ownership

Demerits of Sole Tradership / Disadvantage of Sole Tradership

Shortage of capital, unlimited liability, dependent on owner, difficulty in credit, lack of skilled person or staff, ineffective distribution of work, cost of production, entire burden of loss or work, not durable, lack of public confidence, lack of inspection, continuity, lack of incentives, take wrong decision, difficulty in expansion in business, no legal rules to run the business

Represented by Seerat Francis

Informationmaker.blogspot.com