Question

Write any three characteristics of Sole Proprietorship.

Answer 1

1. Ownership by one man: This is owned by a single person. The sole trader contributes the required capital. He is not only the owner of the business but also manages the entire affairs.

2. Freedom of work and Quick Decisions: Since. an individual is himself as an owner, he need not consult anybody else. Hence he can make quick decisions.

3. Unlimited Liability: When his business assets are not sufficient to pay off the business debts he has to pay from his personal property.