Write any three characteristics of Sole Proprietorship.

State three characteristics of sole proprietorship.

Long Answer

Ownership by one man: It is owned by a single person. The sole trader contributes the required capital. He is not only the business owner but also manages all the affairs.
Freedom of work and Quick Decisions: Here, a person himself is an owner; he does not need to consult anybody else. Hence, he can make quick decisions.
Unlimited Liability: When his business assets are not sufficient to pay off the business debts, he has to pay from his personal property.

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Characteristics of a Sole Trader

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