The following are the characteristics of a Sole Trader.
Characteristics of Sole Trader
The following are the characteristics ofa Sole Trader.
Ownershipby one man
This is owned by single person. The soletrader contributes the required capital. He is not only the owner of thebusiness but also manager of the entire affairs.
Freedomof work and Quick Decisions
Since the individual is himself as aowner, he need not consult anybody else. Hence he can take quick decisions.
UnlimitedLiability
When his business assets are notsufficient to pay off the business debts he has to pay from his personalproperty.
EnjoyingEntire Profit
He strives tirelessly for theimprovement and expansion of his business and enjoys all the benefits of hishard work.
Absenceof Government Regulation
A sole proprietor concern is free fromGovernment regulations. No legal formalities are to be observed in itsformation, management or in its closure.
NoSeparate Entity
The sole trading concern comesto an end with death, disability, insanity andinsolvency of the individual.
Maintenanceof Secrecy
Since he/she manages all the affairs ofthe business, the secrecy can be maintained easily.
Study Material, Lecturing Notes, Assignment, Reference, Wiki description explanation, brief detail
11th Commerce : Chapter 4 : Sole Proprietorship : Characteristics of Sole Trader |
