The advantages of sole trading concern:

1. Easy to commence and dissolve
2. Quick decision
3. Secrecy
4. Flexibility
5. Personal supervision and control
6. Direct motivation
7. Easy to get loan
8. Economy
9. Social benefits
   
   

The disadvantages of sole trading concern are:

• limited liability
• Limited managerial ability
• Unlimited liability
• Loss in absence
• Uncertain life
• Limited scope for expansion
• Limited scope for opportunity

The following are the characteristics of sole trading concern:

• Sole ownership or proprietorship:
  A sole proprietorship is wholly owned by one individual. The individual supplies the total capital from which his own wealth or from  borrowed funds. The sole trader individually invests and earn the profit.
  
  
• Unlimited liability:
  The liability of the owner is not limited to his investment. Proprietor is liable for the debts of business. It means in the case of loss of business the sole trader has to sell his/her personal property to pay a debt. Sole trading concern has liability which is not limited to the property of a business.

   

• Sole management and control:
  The owner manages and controls whole affairs of the business.  The owner himself/herself directly involve in business activities and manages the business affairs. The owners also engaged in the control of the various activity of a business.

• No legal existence:
  A sole proprietorship is not a legal entity, the owner, and the business has the same legal status in the eyes of law. The owners of the business are one and same.

   

• Maintain Secrecy:
  In this business, it is very easy to maintain the secrecy of information. The information relating to business are not required to share with other. Therefore, this form of business and highest level of information secrecy.

• No sharing of profits:
  As sole trading, a concern is established and managed by the single person. The proprietor himself gets all the profit, he doesn't have to share profit to others. As well as if losses has to be beared by himself  too.
  
  
• Independent decision:
  A sole trading concern is an independent organisation. The sole trader can freely make the decision. He is the supreme judge for all the business matters. Therefore, in this form of business decision making is fast.
  
  
• Limited area of operation:
  The resources of the sole trading concern is limited.Sole trader individually can't manage the big size of a business and he can't manage the big size of a business and he cannot invest for this as well.
  
  
• Individual risk and responsibility:
  A sole investment, management, and control, the owner himself bears the whole risk of the business. Sole traders personally responsible for a accomplish all activities of a business.

The advantages of sole trading concern are explained below:

• Easy to commerce and dissolve:
  Dissolution of  sole trading concern equally simple. There are no legal formalities to start and close the business. The owner can start his business after its registration with the concerned office and close it down in his/her wishes.
  
  
• Quick decision:
  A sole trader can take business decisions by himself immediately, according to his experiences and efficiency. He does not have to consult anybody to take decisions so that decision is quick and timely in sole trading concern.
  
  
• Secrecy:
   Business secrecy is key to business success. This is no legal regulation regarding the disclosure of business information. A sole proprietor is all-in-all of his business and he is also not required to publish any financial statements, he can tightly maintain business secrecy.
  
  
• Flexibility:
  In a sole trading concern, the owner has a much greater degree of flexibility to run business. No legal formalities are required for making changes in operations. . Flexibility helps him to take benefits of the favorable situation.
  
  
• Personal supervision and control:
  The proprietor is able to supervise every work of the business himself. This helps to build up close  and cordial  relations with the employees.  The sole traders act as both owner and manager, he can easily maintain and develop personal and business relations with all concerned parties like customers, suppliers, employees etc. which helps in the goodwill of the concern.
   
• Direct motivation:
  The direct relation between the effort and reward serves as a powerful incentive to the proprietor to manage the concern efficiently. The sole trader enjoys the total profits of the business alone. It direct motivates him for a hardworking and efficient management of a business.
  
  
• Easy to get loan:
  The sole trading concern is a one man business organization. It is easy to start and close. A sole trader has personal relations with a large number of people. He can easily convince other people to provide loan him.
  
  
• Economy:
  The owner himself works as the manager and an employee of his business. The owner being both manager and employees can save some office and administrator expenses and attain economy operations of a business.
  
  

• Social benefits:
  Sole trading concern has a number of social benefits. It gives employment to other people of the society the sole trader earns a better status in the society. He can involve himself in social service, provide employment, give donations and proper sponsors social functions. Hence, it provides benefits to the society.

The disadvantages of sole trading concern are:

• Limited capital:
  Due to the investment of  single owner, the capital of a sole trading concern is limited. Such limited capital is insufficient for large-scale production and marketing of goods and services.
  
  
• Limited managerial skills:
  A sole trading concern is managed by a single owner who may not have adequate managerial skills technical abilities. So, it may face various managerial deficiencies.
  
  
• Unlimited liability:
  The liability of a sole trader is not limited to his invest capital.  It means in the case of loss of business the sole trader has to sell his/her personal property to pay a debt. Sole trading concern has liability which is not limited to the property of a business.
  
  
• Loss in absence:
  It may come to close if the proprietor remains absent from his business due to his illness or other reasons. In the absence of proprietor,may lead to heavy losses. Employees may not be efficient or they may not take sincere interest. 
  
  
• Uncertain life:
  The life of sole trading concern is closely connected with the life of the owner.  So, it can be terminated any time due to death. lunacy, insolvency or disability of the owner. The successors may not have the same degree of self-reliance and ability.
  
  
• Limited scope of expansion:
  It has limited scope of expansion and development.  Due to the limited amount of capital and managerial skills, its activities cannot be diversified.
  
  
• Limited scope of opportunity:
  Due to the limited scope of expansion and development of the business, its employees get limited opportunities for training, higher studies, attractive salaries and other benefits. 

The advantages of sole trading concern are explained below:

• Easy to commerce and dissolve:
  Dissolution of  sole trading concern equally simple. There are no legal formalities to start and close the business. The owner can start his business after its registration with the concerned office and close it down in his/her wishes.
  
  
• Quick decision:
  A sole trader can take business decisions by himself immediately, according to his experiences and efficiency. He does not have to consult anybody to take decisions so that decision is quick and timely in sole trading concern.
  
  
• Secrecy:
   Business secrecy is key to business success. This is no legal regulation regarding the disclosure of business information. A sole proprietor is all-in-all of his business and he is also not required to publish any financial statements, he can tightly maintain business secrecy.
  
  
• Flexibility:
  In a sole trading concern, the owner has a much greater degree of flexibility to run business. No legal formalities are required for making changes in operations. . Flexibility helps him to take benefits of the favorable situation.
  
  
• Personal supervision and control:
  The proprietor is able to supervise every work of the business himself. This helps to build up close  and cordial  relations with the employees.  The sole traders act as both owner and manager, he can easily maintain and develop personal and business relations with all concerned parties like customers, suppliers, employees etc. which helps in the goodwill of the concern.
   
• Direct motivation:
  The direct relation between the effort and reward serves as a powerful incentive to the proprietor to manage the concern efficiently. The sole trader enjoys the total profits of the business alone. It direct motivates him for a hardworking and efficient management of a business.
  
  
• Easy to get loan:
  The sole trading concern is a one man business organization. It is easy to start and close. A sole trader has personal relations with a large number of people. He can easily convince other people to provide loan him.
  
  
• Economy:
  The owner himself works as the manager and an employee of his business. The owner being both manager and employees can save some office and administrator expenses and attain economy operations of a business.
  
  

• Social benefits:
  Sole trading concern has a number of social benefits. It gives employment to other people of the society the sole trader earns a better status in the society. He can involve himself in social service, provide employment, give donations and proper sponsors social functions. Hence, it provides benefits to the society.
  
  
  

The disadvantages of sole trading concern are:

• Limited capital:
  Due to the investment of  single owner, the capital of a sole trading concern is limited. Such limited capital is insufficient for large-scale production and marketing of goods and services.
  
  
• Limited managerial skills:
  A sole trading concern is managed by a single owner who may not have adequate managerial skills technical abilities. So, it may face various managerial deficiencies.
  
  
• Unlimited liability:
  The liability of a sole trader is not limited to his invest capital.  It means in the case of loss of business the sole trader has to sell his/her personal property to pay a debt. Sole trading concern has liability which is not limited to the property of a business.
  
  
• Loss in absence:
  It may come to close if the proprietor remains absent from his business due to his illness or other reasons. In the absence of proprietor,may lead to heavy losses. Employees may not be efficient or they may not take sincere interest. 
  
  
• Uncertain life:
  The life of sole trading concern is closely connected with the life of the owner.  So, it can be terminated any time due to death. lunacy, insolvency or disability of the owner. The successors may not have the same degree of self-reliance and ability.
  
  
• Limited scope of expansion:
  It has limited scope of expansion and development.  Due to the limited amount of capital and managerial skills, its activities cannot be diversified.
  
  
• Limited scope of opportunity:
  Due to the limited scope of expansion and development of the business, its employees get limited opportunities for training, higher studies, attractive salaries and other benefits.