SOLE �PROPRIETORSHIP
MEANING:-
Sole proprietorship is a form of business organization in which a single individual introduces his own capital, skill and intelligence in the management of its affairs and is solely responsible for the results of its operations.
The individual may run the business on his own or may obtain the assistance of employees. It is the first stage in the evolution of the forms of organization and is, thus, the oldest among them.
A sole proprietor contributes and organizes the resources in a systematic way and controls the activities with the objective of earning profit.
DEFINITIONS
J.L.HANSON
“A type of business unit where one person is solely responsible for providing the capital and bearing the risk of the enterprise, and for the management of the business.”
KIMBALL AND KIMBALL
“Sole proprietorship is a form of business where the individual proprietor is the supreme judge of all matters pertaining to his business.”
FEATURES OF�SOLE PROPRIETORSHIP
Single ownership
No separation of ownership and management
Less legal formalities
No separate entity
No sharing of profit and loss
Unlimited liability
One-man control
MERITS OF SOLE PROPRIETORSHIP
LIMITATIONS OF SOLE PROPRIETORSHIP
SUMMARY
Sole proprietorship is a form of business organization in which an individual invest his own capital, uses his own skill and intelligence in the management of its affairs and is solely responsible for the results of its operations.
THANK YOU
By
Karthikeya