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Sole Proprietorship - Meaning & Features

Steps involved in Establishing Business
Elements of Business
Class 9

Overview

Explain the meaning of sole trader and the characteristics of a sole trader; Discuss the formation of sole trader business and its objectives; Explain the sole proprietorship form of business organization; Discuss the features of a Sole Proprietorship; Discuss the merits of Sole Proprietorship; Discuss the limitations of Sole Proprietorship; Explain the difference between sole trader and Sole Proprietorship; Discuss the suitability and social utility of a sole proprietorship; Discuss the expansion of sole proprietorship; Discuss the causes of survival of a sole trader; Discuss about the concept of one - man control; Discuss about the restrictions on sole trade.

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Sole Proprietorship

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Related Questions to study

Mr. Varun wanted to start a bakery shop with limited money. What kind of business organization you would suggest him?

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The sole proprietorship form of business discourages self employment.

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Provision of residential accommodation to the member at reasonable rates is the objective of ________________.

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A business started by only one person is called________.

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Which of the following is/ are advantage of LLP?

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As the business flourishes, a sole proprietorship might not get a chance to decrease costs as it lacks the economies of large scale business.

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Abdul is a single owner of a shoe manufacturing business. His business was suffering from continuous losses. To revive his business and to expand, he took a loan of 20 lakhs from 'Progressive Finance Co.' In spite of starting new range of products and great effort by Abdul, business continued to suffer losses. This resulted in the declining assets and mounting debts. Abdul started defaulting on his repayment schedule. Finance company served him final notice to repay the loan and settle the account. He proposed the finance company to take over the business assets and clear their dues. Finance company took over the assets of the business in part settlement of their dues as the assets were not sufficient to settle the debts and they claimed the remaining amount from Abdul from his personal assets. Abdul refused to do so on the ground that loan was taken for the business and not by him for personal use.
1. Name the form of business organization followed by Abdul.
2. Is the finance company justified in asking for remaining amount from Abdul's personal assets? justify your answer by giving suitable feature of the business organization. 

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Sole proprietorship form is most suitable : ________.

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A person who conducts business of sole trading concern is known as sole trader.

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Sole proprietorship form is not suitable _____________________.

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