A type of business in which there is one owner who has control over the business is called sole proprietorship. There are many advantages and features of this type of business. The amount of invested capital is low with short amount of capital sole proprietor can start his business. Sole proprietorship has the entire control over the business that’s why the decision making is quick and easy. There is also the confidentially in business because there is one owner.
He does not have to share his business matters to others. So privacy is maintained in business. This type of business requires no legal formalities so start of this business in easy. It can be started in society like shop etc. When owner died the business is closed. And his relatives, son can start business.
Sole proprietorship does not have to maintain the books of account. It also does not have compulsory to do audit of their accounts. The business is not so tough. He can easily manage it. There is also a risk in this business. The liability of the owner is unlimited. If he became insolvent then he had to pay his debts from his personal assets.
There is a risk of gain or loss in sole proprietorship. He can maintain his business affairs itself.
This kind of business can be start with small capital that’s why its formation is easy.