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SOLE TRADING CONCERN SOLE PRORIETORSHIP
In a sole trading organization an individual provides capital, uses hisown skill and ability and is solely by responsible for the results of businessoperations. All the profits of business are enjoy by him and all the lossesare suffered by him alone.
The features of sole trading Concern are:-
(a)It is promoted and formed by an individual who contributes towardsits capital all on his own.(b)The Individual who contributes capital also manages the business.(C)He bears all the risks of business.(d)He enjoys all the profits and suffers all the losses of business byhimself.(e)It in one of the oldest and simplest form of business.(f)lt can be easily formed.(g)There is flexibility in this form.
Advantages of Sole Trade Concern.(a)Easy Formation :
Formation of sole trading concern does notinvolve lengthy legal formalities. Because of this it can be formedeasily and quickly.
Since the business is managed by a single manbusiness secrecy can be maintained. Moreover he need not publicisehis activities through accounts or reports.
The owner and manager of a sole tradingconcern Is the same person. Sine there is direct relationshipbetween effort and reward the sole trader devotes more time andattention to business.
(d)Quick decision and prompt action. :
Since the decisionsregarding business are taken by a single person, the decision arepromptly taken and executed.
A sole trader can expand, contract, modify or adjust hisbusiness according to the needs of time and environment.
Since the sole trader handles all the areas of business himself, he develops personal rapport and understandingwith customers suppliers, government authorities and public, whichwill benefit him In the long run.