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.