Question

What do you undersyand by sole proprietorshipand its features?

Answer 1

Proprietorship (also called sole trade organisation) is the oldest form of business ownership in India. In a proprietorship, the enterprise is owned and controlled by one person. He is master of his show. He sows, reaps, and harvests the output of this effort. He manages the business on his own. If necessary, he may take the help of his family members, relatives and employ some employees.

Sole proprietorship is the simplest and easiest to form. It does not require legal recognition and attendant formalities. This form is the most popular form in India due to the distinct advantages it offers. William R. Basset opines that “The one-man control is the best in the world if that man is big enough to manage everything.

features of sole proprietorship:

1. One Man Ownership
2. No Separate Business Entity:
3. No Separation between Ownership and Management:
4. Unlimited Liability:
5. All Profits or Losses to the Proprietor