Sole Trading Concern

Things to remember

• Sole trading is the oldest and simplest form of business organization.
• Sole trading is a business organization, in which an individual contributes the whole amount of capital, manages the business himself or herself, bears all the risks alone, enjoys all the profits and suffers all the losses.
• Sole investment, sole management, no profit sharing, limited operation, independence and unlimited liability are the characteristics of sole trading.
• Easy to start and dissolve, quick decision, secrecy, incentive, personal relations and economy are the advantages of sole trading.
• The disadvantages of sole trading are limited capital, loss in absence, unlimited liability, limited managerial skills, the absence of separate legal status and uncertain life.