1.Single ownership 2.Individual risk bearing 3.No separate legal entity 4.Free of operation 5.Unlimited liability 6.One man control

Features of Sole Proprietorship:

Sole proprietorship is a popular form of business ownership where a single individual owns and operates the business. It is the simplest and most common type of business structure, characterized by several key features:

1. Single Ownership:
Sole proprietorship is owned and managed by a single individual who has complete control and authority over the business. The owner is responsible for making all the decisions and assumes all legal and financial liabilities associated with the business.

2. Easy Formation and Dissolution:
One of the primary advantages of a sole proprietorship is its ease of formation. There are no complex legal procedures or formalities required to establish a sole proprietorship. The business can be started by simply obtaining the necessary licenses and permits. Similarly, dissolving a sole proprietorship is relatively simple as the owner can cease operations whenever desired.

3. Unlimited Liability:
In a sole proprietorship, the owner has unlimited personal liability for all the debts and obligations of the business. This means that in case of any financial loss or legal claims, the owner's personal assets can be used to settle the business debts. This is a significant drawback as it puts the owner's personal assets at risk.

4. Direct Decision Making:
As the sole proprietor, the owner has complete control and autonomy over all business decisions. This allows for quick and direct decision-making without the need for consultations or consensus with partners or shareholders. It enables the owner to respond promptly to market changes and customer needs.

5. Sole Profit Receiver:
All profits generated by the business belong exclusively to the owner. Unlike other business structures, there is no need to share the profits with partners or shareholders. This provides a direct financial benefit to the proprietor and allows for greater flexibility in the use of profits.

6. Minimal Government Regulation:
Sole proprietorships generally have fewer government regulations and legal formalities compared to other business entities. This reduces the administrative burden and allows the owner to focus more on the core operations of the business.

7. Limited Financial Resources:
Sole proprietorships often face limitations in accessing financial resources. Since the business relies solely on the owner's personal funds or loans, it may be challenging to raise substantial capital for business expansion or investment purposes.

Overall, sole proprietorship offers simplicity, autonomy, and straightforwardness in business ownership. However, it also carries the risks of unlimited liability and limited access to resources. Entrepreneurs considering this form of business structure should carefully evaluate the pros and cons based on their specific circumstances.