![]() This is the eighth features of a sole trader and it means that the capital is the initial backbone of the business because it helps to decide the size and volume capacity of the company. So, that’s the reason, the dissolution of the sole proprietorship firm is very easy. In this case, an only business owner can dissolve his business. He/she has the responsibility and authority to take decisions and implement it on the business for the growth or success.Įasy dissolution is the seventh features of a sole traderand it means that the sole proprietorship business has no legal documents regarding the business. ĭecision making is the sixth features of a sole trader and it means that an individual owner of the sole proprietor business can take all the legal decisions about the business because he is the owner and manager of his business. Note: Features of a sole trader are also known as features of sole proprietorship. #Best financial software for sole proprietors license#To open a restaurant, the sole trader needs a legal license from the municipality office, and to open a medical shop, the sole trader must have a legal license from the government (state or central). In any case, a couple of valid restrictions might be there in setting up a particular type of business. Less legal formalities are the fifth features of a sole trader and it means that, in the sole proprietorship business, the legal documents are necessary but in terms of less.Īt the time of formation, there is no legal documents are required, similarly, at the time of dissolution, there are no legal documents are required. So, that’s the reason, unlimited liability is also treated as a disadvantage factor for our sole proprietorship business. The huge amount of liability is not good for the sole proprietor because this immerses his/her business and him also. ![]() If a sole trader has any kind of loss or liabilities in business then he is paid money to creditors by selling his personal property like land, building, and machinery (if he has). In this business, the nature of the liability is unlimited. ![]() ![]() This is the fourth features of a sole trader and it means that there is only one sole proprietor or business owner in the sole proprietorship business, due to which all the liabilities have to be handled by him. Note: Features of a sole trader are also known as features of a sole proprietorship. This feature is a very important feature for the benefit of a sole trader because through this he/she can develop their working attitude, potential, capacity, efficiency, supervision ability, and so on. ![]()
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