Explain four Characteristics of Sole Proprietorship

  1. OWNERSHIP: The business enterprise is owned by one person.
  2. OBJECTIVE: The main objective of the one man business is to make profit.
  3. SOURCE OF CAPITAL: The Capital Required to set up and run the business is provided by the proprietor.
  4. LIABILTY: The sole proprietor has unlimited liability.
  5. LEGAL ENTITY: It is not a legal entity as the owner is not separated from the business.
  6. MANAGEMENT: The business is controlled and managed by the sole proprietor himself.
  7. LIFE SPAN: The life span depends on the owner. The enterprise can fold up at any time.

Oluwamuyide Peter

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