SSC MTS EXAM

Detailed explanation-1: -A sole trader is a business owned by one person. They are usually small in size. Hairdressers, butchers, and electricians often operate as sole traders.

Detailed explanation-2: -Sole proprietors are small businesses owned by one individual who is responsible for all debts and liabilities the business incurs. 1

Detailed explanation-3: -The owner is the business in the eyes of financial law. This means the sole traders can have complete control of the business and manage how to spend the profits they’ve made. In addition, this control means that the sole trader has unlimited liability.

Detailed explanation-4: -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.