Question

Answer the following questions:
Mention any four merits of sole trading concerns.

Answer 1

The trading concern that is owned and managed by a single person is called sole trading concerns.

In this firm, a single person carries on all the business activities including finance and management.

Four merits of a sole trading concern are :-

1. Quick decision making

2. No share in profits

3. No incorporation cost

4. Can be easily dissolved