Question

Define the following business entities:

Sole Proprietorship

Answer 1

1. A sole proprietorship, also known as a solo tradership, individual entrepreneurship, or proprietorship, is a type of business owned and controlled by one person who is the sole recipient of all earnings or losses and is solely responsible for all risks.
2. The only owner is personally liable indefinitely.
3. All activities are carried out by a single person in a sole proprietorship entity. This sort of sole proprietorship is appropriate for small-scale businesses.
4. Some features of a sole trader are:
   1. Single ownership
   2. No profit sharing
   3. Unlimited liability
   4. No legal formalities to start a business