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Meaning and characteristics or features of sole proprietorship

Answer Text:
1. SOLE PROPRIETORSHIP
- This is a business enterprise owned by one person who is called a sole trader or a sole proprietor.
Characteristics/Features of sole proprietorship.
- The business is owned by one person.
- The capital is contributed by the owner and is usually small.
- The owner enjoys all the profits alone and also suffers the losses alone.
- The owner is personally responsible for the management of the business and sometimes he is assisted by members of his family or a few employees.
- There are very few legal requirements to start the business unit.
- Sole proprietorship is flexible; it is very easy to change the location or the nature of business.