sole proprietorship

Sole proprietorship :-

Sole proprietorship form of business is as old as civilization. This types of business is very common all the world. The formation of sole proprietorship is simple and essay. A person can think to start the business in the morning and he can become the owner the evening. There is  no special law for this types of business. A person over 18 years of age can do any legal work earn his living. The age limit may be 21 year under the court of wards act 1890. Another condition is that the owner must have sound mind. A government servant cannot start any business. There is need of capital to run the whole show. Moreover the owner must have rich experience to run the business efficiently. The profit or loss is the result of his abilities. One person is the owner,manager, financier,employer, seller, and supplier. He can hire the services of the other people for his help. The liability of the owner is unlimited. His business properties as well as private property are responsible to compensate the creditors in case of failure of business. Therefore the size of the business remain small due to small amount of capital and unlimited liability. The success of this type of business depends upon experience, capital and handwork. Thus sole proprietorship is a one man show.