Main advantages or benefits of sole proprietorship or sole trading concern can be expressed as follows:
1. Easy To Commence
Formation and operation of sole proprietorship is simple and quick process. Sole trader can establish and run business at any time because it does not require complex registration process and legal formalities.
2. Easy To Wind Up
Sole proprietorship can be easily dissolved at any time if the proprietor wants to wind up the business.
3. Profit Retention
Sole trader does not need to share profit with others. He/she can retain total profit solely.
4. Maximum Privacy
Owner of sole proprietorship can maintain high level of privacy because he does not share business secrets and data with other parties.
Sole trading concern can be easily managed and controlled because it is small form of business organization.
6. Quick Decision
The sole trader can take decision without consulting others. So, there is no delay in decision making.
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7. Prompt Action
Quick decision helps to take prompt action. It ensures smooth operation of business without delay.
8. Low Start-up Costs
Sole trading concern can be established with small amount of capital. The owner can expand business by increasing the capital.
9. Flexibility
Flexibility is another benefit of sole proprietorship. Changes can be made according to the requirement. Business structure and working pattern can be modified or changed as per the environment.
