SOLE TRADING

PRESENTED BY: BISHAL LUITEL

DEFINTION
⚫ Sole Trading is a business that is owned
by one person, but however it can be
operated by more than one person.
Examples of a Sole Trading
⚫ Grocery Shop
⚫ Restaurants
⚫ Petrol Station
⚫ Barber shop
⚫ Hairdressing service
⚫ Gardner service
Advantages of Sole Trading Business
⚫ In sole trading business profit are not
shared.
⚫ A sole trader business is easy to establish
and manage.
⚫ Decision making is speedy in the sole
trader business.
⚫ Sole trading business offer customers
special attention.
Disadvantage of Sole Trading
Business
⚫ Debt incurred by the business must
borne by the owner.
⚫ A sole Trading normally find it hard to
raise capital.
⚫ Long working hours for the manager.
⚫ Lack of competitiveness limited
managerial skills.
Characteristics of Sole Trading
⚫ Ownership-The business is owned by a single
individual.
⚫ Management and control; Finance - The
necessary capital to run the business is
provided by the sole owner
⚫ Risk- The proprietor himself bears all the
risks. No one else has any stake in the
business.
⚫ Sole trader have few legal stipulation
regarding formation, certain types of Sole
proprietorship must ensure that government
regulation is followed.
THANK YOU