Advantages of Sole Proprietorship: 

1. Quick decision making: A sole proprietor enjoys considerable degree of freedom in making business decisions. Further, the decision making is prompt because there is no need to consult others.

2. Confidentiality of information: Sole decision making authority enables the proprietor to keep all the information related to business operation confidential and maintain secrecy. 

3. Direct incentive: The need to share profits does not arise as he/she is the single owner. This provides maximum incentive to the sole trader to work hard.

4. Sense of accomplishment: There is a personal satisfaction involved in working for oneself. The knowledge that one is responsible for the success of the business not only contributes to self-satisfaction but also instills in the individual a sense of accomplishment and confidence in ones abilities.

Limitations of sole proprietorship:

1. Limited resources: Resources of a sole proprietor are limited to his/her personal savings and borrowings from others. Banks and other lending institutions may hesitate to extend a long term loan to a sole proprietor.

2. Limited life of a business concern: In the eyes of the law the proprietorship and the owner are considered one and the same. Death, insolvency or illness of a proprietor affects the business and can lead to its closure.

3. Unlimited liability: If the business fails, the creditors can recover their dues not merely from the business assets, but also from the personal assets of the proprietor. A poor decision or an unfavorable circumstance can create serious financial burden on the owners. 

4. Limited managerial ability: The owner has to assume the responsibility of varied managerial tasks such as purchasing, selling, financing, etc. It is rare to find an individual who excels in all these areas. Thus, decision making may not be balanced in all the cases. 

5. Competition of big industries: Now-a-days in a modern world demands are more. To full fill those numerous demands big industries were formed. By producing goods in large scale, supply them at low rates and also provide other number of facilities. As such sole trading concern unable to complete with them.