(1) Simplicity:
The sole trading firm is the oldest and the simplest form of business organisation.
(2) No legal formalities:
No legal formalities are required for the formation and closing of a sole trading firm.
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(3) Single ownership business:
It is a one man show. It is owned and managed by a single person. The total required capital is invested by sole person.
(4) Self employment:
The sole trader puts his own labour in conducting his business. If necessity arises, he may employ a few paid assistants or use the service of the members of his family.
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(5) No sharing of profits and risks:
The sole trader enjoys all the profits of the enterprise and similarly bears all the losses or risks involved in the business.
(6) Exclusive managerial rights:
The sole trader possesses the sole authority and right to manage the business.
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(7) Ere from Government regulations:
The sole trading concern is not required to undergo any special legislation of legal formalities.
(8) Unlimited liability:
The liability of a sole trader is unlimited. Hence, for business debts, not only his business assets but also his private assets become liable.
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(9) Generally local business:
The activities of a sole trader are generally confined to a certain locality.
(10) Legal status:
The legal status of a sole trader and that of the concern is the same. Hence, a sole trading concern solely depends upon the life of the sole trader.