Characteristics of Sole Proprietorship Business

July 1, 2022November 5, 2022 Supriyo Sir

Discuss the Characteristics of Sole Proprietorship Business.

Or, What are the Features of a Sole Proprietorship Business?

Or, Write down the nature of a Sole Proprietorship Business.

Four notable characteristics of sole proprietorship business are discussed below:

1. Ownership and control:

There is only one owner in a sole proprietorship. That is, the business is established in the ownership of a single person. In such a business, the owner himself forms the business, provides the necessary capital, and conducts the business. That is, he manages and controls everything in production, sales, and management. This type of business combines centralized ownership and centralized control.

2. Legal status:

There is no legal entity in a sole proprietorship business. That is, the entity of the owner is not seen separately from the entity of the business. In the eyes of the law, the owner of the business and the business is one and the same. That is why in the case of lawsuits, nothing can be done in the name of the business, it has to be done in the name of the owner.

3. Capital:

The capital of a sole proprietorship is provided by the owner himself. If necessary, he invests in the business by borrowing from banks, moneylenders, friends, and relatives.

4. Sustainability:

The sustainability of a sole proprietorship business depends entirely on the competence and will of the owner. If the owner dies or is unable to do normal work, the business goes up. The owner can close the business at any time if he wishes.

Important Questions from this Chapter:

• Characteristics of Sole Proprietorship Business
• Characteristics of Company
• Distinguish between Partnership Business and Sole Proprietorship Business
• Features of Private limited Company
• Distinguish between Private limited Company and Public limited Company
• Disadvantages of Partnership Business
• Advantages of registration of Partnership Business
• Disadvantages of Private limited Company
• Merits of Cooperative Societies
• Steps in forming a Business

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