'Sole' means single. ‘Proprietorship' means ownership. It means only one person or an individual becomes the owner of the business. A Sole Proprietorship is the ownership of a business by one person, who receives all of the profit, but is responsible for all debts and obligations.

2. Mohammed Tareq Aziz
ID: 201611227027
Batch: 27th
Department of Pharmacy,
Bangladesh University
Presented by

3. ü 'Sole' means single.
ü ‘Proprietorship' means ownership.
ü It means only one person or an individual becomes the
owner of the business.
ü A Sole Proprietorship is the ownership of a business by
one person, who receives all of the profit, but is
responsible for all debts and obligations.
ü A legal form of business operation between two or more
individuals who are share management , loss and profits.
ü It Depends on the desire and capacity of the partners.
Sole proprietorship
Partnership business

4. Basis of
Comparison
Sole Proprietorship Partnership
1. Structure
An individual doing his own
business.
Two or more people doing
business for profit.
2. Minimum
members
Only One Two
3. Liability Born by proprietor only. Shared by partners.
4. Duration Uncertain
Depends on the desire and
capacity of the partners.
5. Management
Inefficient management due to
the limited supply of skills.
The collective skill of partners
leads to efficient management.
6. Finance
Scope of raising capital is
limited.
Scope of raising capital is
comparatively high.
7. Freedom
Owner can make all the
decisions regarding the
Infighting and differing opinions
may prevent the business from
Sole Proprietorship VS Partnership

6. Characteristics of Sole Proprietorship.

7. Characteristics of
Sole
Proprietorship
1
Single Ownership:
A single individual always owns sole
proprietorship form of business organization.
That individual owns all assets and properties
of the business
2 No sharing of Profit and Loss :
The entire profit arising out of sole proprietorship
business goes to the sole proprietor. If there is
any loss it is also to be borne by the sole
proprietor alone.
3 One man’s Capital:
The capital required by a sole proprietorship
form of business organisation is totally arranged
by the sole proprietor.

8. 4 One-man Control:
The controlling power in a sole proprietorship
business always remains with the owner. The
proprietor alone takes all the decisions to run the
business.
5 Unlimited Liability:
The liability of the sole proprietor is unlimited. This
implies that, in case of loss the business assets along
with the personal properties of the proprietor shall
be used to pay the business liabilities.
6 Less Legal Formalities:
The formation and operation of a sole proprietorship
form of business organisation requires almost no
legal formalities. It also does not require to be
registered.

9. 1 Easy to Form and Wind up
2 Direct Motivation
3 Quick Decision and Prompt Action
4 Better Control
5 Maintenance of Business Secrets
6 Close Personal Relation
7 Flexibility in Operation
8 Encourages Self-employment
Advantages of Sole
Proprietorship

10. 1 Limited Capital
2 Unlimited Liability
3 Lack of Continuity
4 Limited Size
5 Lack of Managerial Expertise
Limitations of
Sole Proprietorship