ECONOMICS

Detailed explanation-1: -What is a Sole Proprietorship? A sole proprietorship is an unincorporated business that one person owns and manages. As the business and the owner are not legally separate, it is the simplest form of business structure. It is also known as individual entrepreneurship, sole trader, or simply proprietorship.

Detailed explanation-2: -A sole proprietorship is a business that can be owned and controlled by an individual, a company or a limited liability partnership. There are no partners in the business. The legal status of a sole proprietorship can be defined as follows: It is not a separate legal entity from the business owner.

Detailed explanation-3: -An owner can either be a person or a legal entity that is the legal proprietor of a business. For example, a corporation (a legal entity) can be the owner of one or more companies. A sole proprietor specifically refers to the individual owner (proprietor) of a business being run as a sole proprietorship.

Detailed explanation-4: -A sole proprietorship-also referred to as a sole trader or a proprietorship-is an unincorporated business that has just one owner who pays personal income tax on profits earned from the business. Many sole proprietors do business under their own names because creating a separate business or trade name isn’t necessary.

Detailed explanation-5: -Sole proprietorship is a type of business with only one owner. The owner has complete authority over every aspect of the business. A sole proprietorship is not a separate legal entity – it’s considered an extension of the owner. But you can operate under a trade name, like “Bob Smith Plumbing.”