Q. 2. What is Sole trading concern?

Ans: A Sole Trading Concern is a form of business organization in which only one person contributes his capital and skill and enjoys all the profits and bears all the losses of business. It is the oldest and simplest form of business organization. It is also known as ‘Sole Proprietorship'.
The person who runs business under sole trading concern is known as 'Sole trader ’Sole Proprietor’. He is the owner, manager and controller of his business.

The Encyclopedia of Business and Commerce defines sole trading concern as follows:

“A Sole Trading Concern is a form of business organization in which an Individual Invests only his capital; uses his own skill and intelligence in the management of its affairs and is entitled to earn all the profits as also is solely responsible for all the risks of ownership”.

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