The sole trading concern is a private enterprise which is owned, managed and controlled by one person. The owner invests capital and makes all the business decisions. He receives all the profits and bears all the losses. His liability is unlimited and is personally responsible for business debt.
Sole trading concern is easy to start and close. It is a one man show assisted by employees.
Sole trading concern is the oldest form of business. Most, small businesses are sole trading concerns. It is suitable for personal services and perishable products. It is also suitable for small scale local business operations requiring small capital.
Sole trading concern is easy to start and close. It is a one man show assisted by employees.
Sole trading concern is the oldest form of business. Most, small businesses are sole trading concerns. It is suitable for personal services and perishable products. It is also suitable for small scale local business operations requiring small capital.
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Demerits Of Sole Trading Concern
Therefore, the important points in the concept of sole trading concern are:
Therefore, the important points in the concept of sole trading concern are:
* Sole trading concern is owned, managed and controlled by a single person.
* Sole trading concern can be easily started and close.
* The owner of sole trading concern receives all profits and bears all losses.
* The liability of the owner of sole trading concern is unlimited.
* Sole trading concern can be easily started and close.
* The owner of sole trading concern receives all profits and bears all losses.
* The liability of the owner of sole trading concern is unlimited.
