Sole Partnership Business

As this simple definition indicates, where a business undertaking is owned and controlled by one man, with or without the help of his family members or a few employees. We have one-man business and the owner is commonly called the sole Proprietor or Sole Trader. It is also known as Individuals Proprietorship or individual Entrepreneurship.

Historically, this form of organization is the oldest form of business ownership. It is also the simplest and the most natural. He invests his own capital and is his own manager. The full control of the business rests in him. He bears the entire risk and derives the total benefit. He has almost unlimited freedom of action. He may engage in any business he chooses without any legal formalities. Unless he wishes engage in certain types of business requiring licenses. For do so. If he can find a suitable location and can furnish money to produce a supply of merchandise. On the others hand, to open a restaurant, he will have to obtain a license from the Health Department of the Municipal   Corporation.

As his capital is limited and his liability unlimited, a sole trader must confine his activities to small undertakings. It is also difficult, if not impossible for him to enter into new enterprise or experiment. The main types of businesses that take the form of sole proprietorship are retailers. Hawkers, small grocery store, bakers, confectioners, launderers, small printing houses, small machine shops and thousands of similar enterprises and professional firms, such as solicitors, attorneys, accountant, photographers, hairdressers etc.