What is Sole Proprietorship ?
A sole proprietorship is the most popular, oldest and simplest form of business organization. It is basically made up of two words, one is ‘sole’, which means “one” and the second is ‘proprietor’, which means “owner”. So, Sole Proprietorship means a business with a single owner, also known as a sole proprietor. Sole proprietorship is defined as a form of business organization in which the business is owned, managed, and controlled by a single person. The sole proprietor is the sole recipient of all profits and bearer of all losses of the business. It is suitable for enterprises that require personal attention, personalized services, and limited capital, such as Grocery Shops, beauty parlours, boutiques, etc. Other names of the sole proprietorship are Individual Entrepreneurship, Sole Trader, and Individual Proprietorship.
The sole owner of the business cannot share the ownership with any other person, but he/she can appoint employees and take help from other people. Besides, only the owner can invest money in the business, and can raise the capital through loans from other sources of finance.
Table of Content
- Definition of Sole Proprietorship
- Features of Sole Proprietorship
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