Define Sole Trading concern. Explain its merits and demerits.
Answers
Answered by
1
Answer:
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 assole trader or proprietor.
Explanation:
Although sole trading concern has several advantages, it suffers from some drawbacks such as unlimited liability, lack of skill and efficiency, small amount of capital, uncertainty, less chance of expansion etc. Some ofthe key disadvantages or demerits ofsole trading concern can be described as follows
Similar questions