Sole proprietorship, Finance Basics

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Sole Proprietorship

Definition - A sole proprietorship or sole tradership is the oldest and simplest form of business. It is that type of business organization where one person is responsible for profit and loss and is the sole owner of the business. Sole proprietorship is a form of business organization in which an individual introduces his own capital, uses his own skills and intelligence in management of its affairs, assumes all the risk of business and is solely responsible for the results of his operations. The bakery, hardware stores, service stations, barber shops, doctor's clinics, etc. are examples of sole proprietorships.

 

 

 


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