Question

✌️✌️✌️Hello phirannds ✌️✌️✌️
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Explain the features of sole proprietor? ​

Answer 1

✔✔Single Ownership. A sole trading concern is owned by one individual. ...

✔✔Personal Organization or Common Identity. ...

✔✔Capital. .

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✔✔Unlimited Liability. .

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✔✔One Man Control. ...

✔✔Profits and Losses. ...

✔✔No Special Legislation.

Answer 2

FEATURES OF SOLE PROPRIETORSHIP

• Single ownership :- the sole proprietorship firm is owned by a single individual only. All the capital is supplied by the single individual from his own wealth or from borrowed fund.
• Individual risk bearing :- In sole proprietorship form whole risk is borne by a single individual only. The sole beneficiary of all the reward is one individual only. Likewise, if there are losses he/ she alone has to bear them. Thus he /she alone bears that is of business.
• Small size :-The sole proprietorship firms operate on a very small scale. As all the funds are arranged by one person total management and control lies with one person only. A sole trader can arrange Limited funds and has Limited managerial ability. Therefore the scale of operation is generally Limited.
• One man control :- The proprietor is the sole owner of the firm and has full control over it. The ownership and management lies in the hands of one person only. Some persons or manager maybe employed to have the owner but ultimate control lies with the sole trader himself.
• Unlimited liability:- In sole proprietorship firm the proprietor is personally liable for all the debts of the business. In case of business losses, if the business assets are not sufficient to meet all business liabilities, the proprietor may have to sell his personal property to pay of the liabilities.