Know the types of business organisations.

The main topic discussed here is Sole Trading Concerns.

• Definition: A sole trading concern is a business owned, managed, and controlled by a single individual. This person is the sole investor of capital, enjoys all profits, and bears full responsibility for all losses.
• Features:
  • It is one of the oldest and simplest forms of business organization.
  • It is owned and managed by a single person.
  • It is easy to start.
  • The primary objective is to earn profits.
  • The sole trader uses their own skills and is personally responsible for all losses.
  • There are minimal legal constraints to start or close the business.