ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -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 proprietor is someone who owns an unincorporated business by himself or herself.

Detailed explanation-3: -A Sole proprietorship is an enterprise owned exclusively by one natural person and in which there is no legal distinction between the owner and the business entity. The entrepreneur exercises his activity without having created a distinct legal person.

Detailed explanation-4: -As you start your business, it’s most likely that you are a solo entrepreneur, or a “solopreneur” for short, which is a single-person owned business. A sole proprietor, on the other hand, is a legal structure for a business that is owned and operated by a single individual.

Detailed explanation-5: -The sole proprietor has unconditional and full control over its business. Example: Beauty parlour, barbershop, general store and sweet shop run by a single owner.