Sole Proprietorship

Sole proprietorship is a form of business enterprise which is established, financed, owned, managed and controlled by an individual entrepreneur, who has complete freedom of operation, who bears all-the risks and entitled to all the profits.

Legal Forms of Business Ownership in the Private Sector

In the private sector, there are three main legal forms of business ownership.

(1) Sole Proprietorship (2) Partnership and (3) Company. These are now discussed in brief under separate heads. Sole Proprietorship and its Characteristics The individual proprietorship or sore proprietorship is the oldest form of business organization. It is as old as the civilization itself. Advantages and Disadvantages of Sole Tradership Sole proprietorship is a form of business enterprise in which an Individual owns the business, assumes all risks and operates the firm for his own personal Interest. Sole proprietor here is the sole owner, manager, controller, financier and risk bearer. One Man Control Is Best In The World One man control or one man business (also called sole proprietorship) is the simplest form of business organization. Preference of Sole Proprietorship over Other Forms of Business Organizations Sole proprietorship is the form of organization in which an individual normally introduces his own capital. He uses his own skill and intelligence in the management of its affairs and is solely responsible for the results of its operation.