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Define a sole Trading concern. Explain its merits and demerits.

Answer»
Definition: “A sole trader is a PERSON who trades on his own account rather than in PARTNERSHIP or as a member of a company.” (MICHAEL Greener)
A sole trading concern has the following merits over other forms of commercial organisation:

1.      Ease in formation: - a sole trading concern is considerably easy to start and to conduct its activities. There are least formalities in the formation of a sole trading concern. A sole trader may also close down the business as per his own will.
2.      Complete control: - The sole trader can have complete control over business OPERATIONS. He can take his own decision regarding the business activities. No need to consult with any ONE
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