MANAGEMENT

Detailed explanation-1: -As the owner of a sole proprietorship, you have complete control over the company and its assets, including any profits or losses. This means you are free to use the profits from your business to invest in stocks or other types of investments.

Detailed explanation-2: -The sole-proprietorship model is adopted in small business requiring small capital and has a small market. So it will not be advisable to invest in such business where the sole proprietor is responsible for all activities and controls.

Detailed explanation-3: -A sole trader keeps all of the company’s profits after tax has been paid on them, rather than having to share profits with a partner. However, they also accept sole liability for paying tax on their profits.

Detailed explanation-4: -You’re self-employed if you run your own business as an individual and work for yourself. This is also known as being a ‘sole trader’. You can keep all your business’s profits after you’ve paid tax on them. You’re personally responsible for any losses your business makes.