Characteristics of Sole Trader
The following are the characteristics of
a Sole Trader.
This is owned by single person. The sole
trader contributes the required capital. He is not only the owner of the
business but also manager of the entire affairs.
Since the individual is himself as a
owner, he need not consult anybody else. Hence he can take quick decisions.
When his business assets are not
sufficient to pay off the business debts he has to pay from his personal
property.
He strives tirelessly for the
improvement and expansion of his business and enjoys all the benefits of his
hard work.
A sole proprietor concern is free from
Government regulations. No legal formalities are to be observed in its
formation, management or in its closure.
The sole trading concern comes
to an end with death, disability, insanity and
insolvency of the individual.
Since he/she manages all the affairs of
the business, the secrecy can be maintained easily.
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