What do you mean by sole proprietorship and explain its features .

Sole Proprietorship
Sole proprietorship means a business owned, financed and controlled by a single
person who is recipient of all profit and bearer of all risks.
It is SUITABLE IN AREAS OF PERSONALISED SERVICE like beauty parlour,
hair cutting, saloons & small scale activities like retail shops.
Features
1. Single ownership : It is wholly owned by one individual
2. Control : Sole proprietor has full power of decision making.
3. No separate legal entity : Legally there is no difference between business
& businessmen.
4. Unlimited liability : The liability of owner is unlimited. In case the assets
of business are not sufficient to meet its debts, the personal property of
owner can be used for paying debts
5. No legal formalities : are required to start, manage and dissolve such
business organisation.
6. Sole risk bearer and profit recipient : He bears the complete risk and
there is no body to share profit/loss with him.

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Hi! Nazmin
I think you should consult your textbook & ncert solutions or RK Singla's book.You will clearly understand the answers of your all questions.
Regards.
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