Methodology on sole trading concern
Answers
A sole trading concern is the simplest form of business structure. It can be set up easily and is inexpensive. The sole proprietor receives all the profits. He is legally responsible for all the aspects of his business including the debts or loss. He makes all the decisions and can employ people.
He can start the business in his own name or use a business name. He has to register this name with the concerned authorities and get a license.
A sole proprietor and his business are considered to be one and the same so there is no separate taxation on the business. The owner has to pay the income tax and self-employment contributions.
In order to increase the turnover and profits, and to minimize the taxes the sole trader should be prepared to devote his time and use the business methods to establish a sound and appropriate foundation for the business.
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 as sole trader or proprietor.