Question

How is equal distribution of wealth possible in sole tradership?

Answer 1

Sole trader business is started by the initiative of a single person. He prepares the blueprints of the business and arranges the necessary finance. No legal formalities are required in the formation of sole proprietorship.

Any individual can start a business whenever and wherever he likes. However, the sole trader must be a person competent to enter into a contract. The business to be carried on must be allowed by law.

In some cases, a licence from the competent authorities may be needed for starting the business. For example, a person desirous of starting a chemist shop is expected to get a licence from the local Government.