Tamilnadu Samacheer Kalvi 11th Commerce Notes Chapter 4 Sole Proprietorship Notes

→ A business organisation is an organisation which is engaged in some industrial or commercial activity.

→ A business may be owned and controlled by a single individual or by a group of individuals who have entered into a formal or informal agreement to jointly conduct the business.

→ Every business undertaking is a separate and distinct business unit.

→ According to Wheeler, “a business undertaking is a concern, company or enterprise which buys and sells, is owned by one person or a group of persons and is managed under a specific set of operating policies”.

→ Sole Proprietorship is a form of business organisation in which an individual introduces his own capital, uses his own skill and intelligence in the management of its affairs and is solely responsible for the results of its operations.

→ All business undertakings are directly or indirectly engaged in the transfer or exchange of goods and services for value.

→ “Sole trader is a type of business unit where a person is solely responsible for providing the capital, for bearing the risk of the enterprise and for the management of business”; – J.L.Hansen

→ “Sole proprietorship is that form of business organisation which is owned and controlled by a single individual. He receives all the profits and risks all of his property in the success or failure of the enterprise”. – Wheeler

→ A sole proprietor is not only the owner of the business but also manager of the entire affairs.

→ A sole proprietor concern is free from Government regulations.

→ Small capital is an important as well as specific advantage of sole proprietorship.

→ The sole trader can easily adjust himself to the changing requirements of his business.

→ The liability of the proprietor for the debts of the business is unlimited.

→ Sole proprietor is more likely to take hasty decision as he need not consult anybody else.

→ A business organisation is an organisation which is engaged in some industrial or commercial activity.

→ A business may be owned and controlled by a single individual or by a group of individuals who have entered into a formal or informal agreement to jointly conduct the business.

→ Every business undertaking is a separate and distinct business unit.

→ According to Wheeler, “a business undertaking is a concern, company or enterprise which buys and sells, is owned by one person or a group of persons and is managed under a specific set of operating policies”.

→ Sole Proprietorship is a form of business organisation in which an individual introduces his own capital, uses his own skill and intelligence in the management of its affairs and is solely responsible for the results of its operations.

→ All business undertakings are directly or indirectly engaged in the transfer or exchange of goods and services for value.

→ “Sole trader is a type of business unit where a person is solely responsible for providing the capital, for bearing the risk of the enterprise and for the management of business”; – J.L.Hansen

→ “Sole proprietorship is that form of business organisation which is owned and controlled by a single individual. He receives all the profits and risks all of his property in the success or failure of the enterprise”. – Wheeler

→ A sole proprietor is not only the owner of the business but also manager of the entire affairs.

→ A sole proprietor concern is free from Government regulations.

→ Small capital is an important as well as specific advantage of sole proprietorship.

→ The sole trader can easily adjust himself to the changing requirements of his business.

→ The liability of the proprietor for the debts of the business is unlimited.

→ Sole proprietor is more likely to take hasty decision as he need not consult anybody else.

Samacheer Kalvi 11th Commerce Notes

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