Question

Discuss the merits and demerits of sole trade business

Answer 1

A sole proprietorship can be setup easily and quickly. No legal formalities and expenditures are involved in the establishment of a proprietorship. There is no need to associate others or to enter any agreement. Only a license may be needed in special cases. The owner can start business operations as and when he desires. Similarly, a sole proprietorship can be closed down very easily and quickly.

Answer 2

Answer:

For a demerit, corresponding point is deducted from his behaviour points. There are severe interventions if he/she drops under a certain level of points. For a merit, he/she gains some points. If a student manages to collect a certain level of points then he/she is certificated and/or rewarded.