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Sole Proprietorship

book keeping

THE SOLE TRADER

THE SOLE TRADER The sole trader or the sole proprietor is a person who owns and runs a business i.e by himself and for himself.   FEATURES OF THE SOLE TRADER Ownership: The business enterprise is owned by one person. Objective: The main objective of the one man business is to make profit. Source of capital: The capital required to set up and run the business is provided by the proprietor. Liability: The sole proprietor has unlimited liability. Legal entity: It is not a legal entity as the owner is not separated from the business. Management: The business is controlled and managed by the sole proprietor himself. 7       Life span: The span depends on the owner. The enterprise can fold up any time.   ADVANTAGES OF SOLE PROPRIETORSHIP It involves small capital. It is easy to establish. Taking of quick decision. It is easy to manage. It requires small operation.… Read More »THE SOLE TRADER

Business Studies

FORMS OF BUSINESS ORGANISATION

FORMS OF BUSINESS ORGANISATION What is business? Business is defined as all forms of activities that people engage in to satisfy their needs of people and sometimes also make profit. Business organisation is a commercial or industrial enterprise and the people who constitute the business.   Types of business organisation Different types of business organisation exist namely: Sole proprietorship Partnership Limited liability company Public limited company Unlimited liability company Cooperative societies and company limited by guarantee   Sole Proprietorship Sole proprietorship is than type of business that is owned and directly run by a sole trader. It is often called one man business. Features of sole proprietorship One person provides the money to start the business One person owns and runs the business There is no differences in law between the owner and the business that is the business is not a legal entity. The owner takes all the profits… Read More »FORMS OF BUSINESS ORGANISATION

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