Question

“Sole proprietorship is a one-man show.” Justify this statement against it and give a reason.

Answer 1

A sole proprietorship is called a one-man show because it is owned, managed, and controlled by a single individual who supplies the capital and makes all decisions independently. The proprietor alone bears the risks and enjoys all profits, with no one else involved in management or liability. This complete control allows quick decisions but also means the business depends entirely on one person’s skills and resources.