A sole proprietorship is a type of business organization in which an individual own the business, operates all the activities related to the business, introduce his own capital, used in own skill and intelligence to run the business and responsible all risks and profit of the business.

Ownership

The ownership of the business unit is by an individual.

Finance

Finance is an essential element to run the business which is provided by the owner. Sometimes he borrowed from friends and financial institution when he required.

Management

In sole proprietorship the owner is the active manager of his business, he delegates his power to his employee if the business is large.  However, the overall control of the business in his hand.

 No Legal Condition

No legal formalities to set up the sole proprietorship business. This type of business starts any time and anywhere without legal formalities by an individual.

Power of dissolving

Sole proprietor dissolves his business taking without any advice from anyone. He has the power to end and start the business when he likes because he is the king of his business.

Risk

Sole proprietor runs the business for his own interest so he is alone responsible for all risk related to business.

Unlimited Liability

Liability of sole proprietor is unlimited. In the situation of bankruptcy, he will bear lose in form of personal wealth.

Immediate decision

In sole proprietorship, an individual can take immediate action to hold the situation.