This is the oldest and simplest form of business. There is a single owner who has the prerogative and responsibility of making all the ultimate decisions concerning the business. Servants or agents may assist the Sole Proprietor, if he functions without the aid of others, his obligations are in Contract and his liabilities for wrongdoing are primarily by Tort.
Advantages of the Sole Proprietorship
Businesses commenced and dissolved with ease.
There are modest expenses involved in starting up the business.