Sole proprietorship is a form of business organisation in which an individual introduces his own capital, uses his own skill and intelligence in the management of its affairs and is entitled to receive all the profit and assumes all the risks of ownership. It is also called one-man business or sole trader or individual proprietorship. It is run under the exclusive ownership and control of an individual businessman. He exercises direct control and supervision over all the activities related to his business.

Features

1. The oldest and the simplest form of organisation.
2. No legal formalities.
3. Individual ownership.
4. Personal control.
5. Undivided risk.
6. Unlimited liability.
7. No separate legal entity.
8. Complete secrecy.
9. Flexible.
10. No legal dissolution.