Q: What do you understand by Sole Proprietorship?
Ans.: Sole Proprietorship is the type of business for which the single proprietor provides capital for business assumes the risk of business and organizes the business independently.
The individual owner provides either his personal capital or borrows from others at his responsibility, he pays rent and wages as well as other inputs out of borrowed capital. He is fully authorized to decide about the methods of production. The success of Sole Proprietorship business depends solely on the personal qualities and talents of the business man.