What's sole trading concern?

 Sole Trading Business... 

It's the oldest form of business organization. An organization which is established by a single person by investing required amount of capital is called sole trading business enterprise. In this form, a single individual is solely responsible for providing the capital, for bearing the risks and for the overall management and control of the enterprise. It is a one-man show, owned, financed and operated by one man. 

       According to Prof. Haney, " The individual proprietor is a form of business organization at the head of which stands an individual as one who is responsible, who directs its operations and who alone runs the risk of failure "

       Features/characteristics of sole trading business enterprise:

1. Single ownership: The sole trading concern is established and managed by a single person. The sole trader individually invests and earns the profit. 

2. Single management and control: In these form of business, owner and manager are same. The owner is him/herself is involved directly in affairs. The owner is also engaged in the control of the various activities of a business. 

3. Single profit and loss: A sole trading concern is established and managed by the single person. Profit and loss aren't shared with others. Sole trading individually enjoys the profit and bears the risk by himself. 

4. Maintain secrecy: In this busy, it is very easy to maintain the secrecy of informations. The informations related to business aren't required to share with others. Therefore this form of business organization can maintain the highest level of information secrecy. 

5. Freedom: In thsi form of business organization, the sole trader can freely make the decisions. He/she doesn't need to take consent of others while making the decisions because it is solely owned. Therefore, in this form of business , decision making is fast. 

6. Unlimited liability: The liabilities of sole trading concern are unlimited. It means, in the case of loss of business, the sole trader has to sell his/her personal property to pay a debt and liability is not only limited to the property of the business.