1.single ownership:this kind of business is owned and controlled by the owner himself.
2.one-man management:since there is only one individual to control business.he himself attend in management.
3.unlimited liability:the creditors on this business can claim on private property of owner.so,it bears unlimited liability.
4.undivided risk:since the business is controlled by only one man.the risk is undivided on such business.
5.no sharing of profit and loss:since the busness is owned by a single person he share all profit and bear all risks.
6.no separate entity:the business and the owners are same.they are no separate entity.hence,law makes no distinction between proprietor and business.
7.limited operation:sole trading concern has limited resources and managerial skills.
8.legal formalities:sole trading concern can be easily started and closed.it should be passed through “private firm regestration act,2014” to be established.
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