Business Studies, asked by hemudharu9362, 1 year ago

Define sole trading concern

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Answered by sanu870
8

Answer...

A sole proprietorship, also known as the sole trader, individual entrepreneurship or proprietorship, is a type of enterprise that is owned and run by one person and in which there is no legal distinction between the owner and the business entity. A sole trader does not necessarily work 'alone'—it is possible for the sole trader to employ other people.[1]

The sole trader receives all profits (subject to taxation specific to the business) and has unlimited responsibility for all losses and debts. Every asset of the business is owned by the proprietor and all debts of the business are the proprietor's. It is a "sole" proprietorship in contrast with partnerships (which have at least two owners).

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Answered by Parkhu123
0

Explanation:

Sole Trading Concern is the form of business that is owned, managed and controlled by an individual. ... In sole trading concern an individual makes all the investments, bears all risks, takes all profits, manages and controls the business himself. He is known as sole trader or proprietor.

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