Simple explanation of sole proprietorship
Sole Proprietorship A sole proprietorship is the simplest form of business. It is owned, managed, and controlled by one single person. ✔ Simple Meaning A business run by one person is called a sole proprietorship. ✔ Key Features Single owner – one person invests the money and runs the business. Easy to start – no complicated legal procedures. Owner gets all the profit – but also bears all losses. Common in small shops like tea stalls, grocery, stores, tailoring shops, mobile repair shops, etc. ✔ Example A small kirana shop run by one person in your area is a sole proprietorship.