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Sole proprietorship is a form of
business enterprise which is established, financed,
owned, managed and controlled by an individual entrepreneur,
who has complete freedom of operation, who bears all-the
risks and entitled to all the profits. |
| Legal
Forms of Business Ownership in the Private Sector |
In
the private sector, there are three main legal forms
of business ownership. |
(1)
Sole Proprietorship (2) Partnership and (3) Company.
These are now discussed in brief under separate heads. |
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The
individual proprietorship or sore proprietorship is
the oldest form of business organization. It is as old
as the civilization itself. |
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Sole
proprietorship is a form of business enterprise in which
an Individual owns the business, assumes all risks and
operates the firm for his own personal Interest. Sole
proprietor here is the sole owner, manager, controller,
financier and risk bearer. |
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One
man control or one man business (also called sole proprietorship)
is the simplest form of business organization. |
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Sole
proprietorship is the form of organization in which
an individual normally introduces his own capital. He
uses his own skill and intelligence in the management
of its affairs and is solely responsible for the results
of its operation. |
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