8/8/2019 The Sole Trading Concern

1/15

THE SOLE TRADINGTHE SOLE TRADING

CONCERNCONCERN

8/8/2019 The Sole Trading Concern

2/15

DEFINITION It is a type

of business

entity which isowned and run byone individual andwhere there is no

legal distinctionbetween the ownerand the business.

8/8/2019 The Sole Trading Concern

3/15

FEATURES OF SOLEFEATURES OF SOLE

OWNERSHIPOWNERSHIP

EASY FORMATIONEASY FORMATION

SELF MANAGEMENT & CONTROLSELF MANAGEMENT & CONTROL

SELF CAPITALSELF CAPITAL

UNLIMITED LIABILITYUNLIMITED LIABILITY

NO SHARING OF PROFITS & LOSSESNO SHARING OF PROFITS & LOSSES

NO LEGAL STATUSNO LEGAL STATUS

NO STABILITYNO STABILITY

NO GOVERNMENT RULES &REGULATIONSNO GOVERNMENT RULES &REGULATIONS

8/8/2019 The Sole Trading Concern

4/15

EASY FORMATION & SELFEASY FORMATION & SELF

ADMINISTRATIONADMINISTRATION

ITS FORMATION IS QUITE EASYITS FORMATION IS QUITE EASY

IT INVOLVES COMPLETE MANAGEMENT ANDIT INVOLVES COMPLETE MANAGEMENT ANDCONTROL BY THE SOLE TRADERCONTROL BY THE SOLE TRADER

8/8/2019 The Sole Trading Concern

5/15

SELF CAPITAL AND UNLIMITEDSELF CAPITAL AND UNLIMITED

LIABILITYLIABILITY

THE SOLE TRADERTHE SOLE TRADERINVESTS THE ENTIREINVESTS THE ENTIRECAPITAL ON ITS OWNCAPITAL ON ITS OWN

HE HAS UNLIMITEDHE HAS UNLIMITEDBORROWING CAPACITYBORROWING CAPACITY

FROM BANKS ANDFROM BANKS ANDFINANCIALFINANCIALINSTITUTIONSINSTITUTIONS

8/8/2019 The Sole Trading Concern

6/15

NO LEGAL STATUS & NONO LEGAL STATUS & NO

SHARING OF PROFITS ANDSHARING OF PROFITS AND

LOSSESLOSSES

THE SOLE TRADINGTHE SOLE TRADING

CONCERN DOES NOTCONCERN DOES NOT

HAVE ANYHAVE ANY

INDEPENDENT LEGALINDEPENDENT LEGALSTATUSSTATUS

HE OWNS ALL THEHE OWNS ALL THE

PROFITS OF THEPROFITS OF THE

BUSINESS AS WELL ASBUSINESS AS WELL AS

BEARS ALL LOSSESBEARS ALL LOSSES

8/8/2019 The Sole Trading Concern

7/15

NO STABILITY & NO GOVERNMENTNO STABILITY & NO GOVERNMENT

RULESRULES THE STABILITY OF THE FIRMTHE STABILITY OF THE FIRMDEPENDS ON THE LIFE OFDEPENDS ON THE LIFE OFTHE SOLE TRADERTHE SOLE TRADER

NO STATUARY RULES ARENO STATUARY RULES AREAPPLIED IN THE FORMATIONAPPLIED IN THE FORMATIONOF SOLE TRADING CONCERNOF SOLE TRADING CONCERN

BUT IT HAS TO OBSERVEBUT IT HAS TO OBSERVECERTAIN LICENSE RULESCERTAIN LICENSE RULES

8/8/2019 The Sole Trading Concern

8/15

THE ADVANTAGES ANDTHE ADVANTAGES AND

DISDIS--ADVANTAGESADVANTAGES

8/8/2019 The Sole Trading Concern

9/15

MERITS &DE-MERITS

EASE IN FORMATION

FLEXIBILITY INOPERATIONS

BUSINESS SECRECY

BETTER CUSTOMER

RELATIONS

NO LEGAL STATUS

NO STABILITY UNLIMITED LIABILITY

LIMITED

MANEGERIAL SKILLS

8/8/2019 The Sole Trading Concern

10/15

THE SOLE TRADER IS WITH HIS IDEAS TRIESTHE SOLE TRADER IS WITH HIS IDEAS TRIES

TO INCREASE SALE AND PROFITS & TRIES TOTO INCREASE SALE AND PROFITS & TRIES TO

BOOST UP THE MARKET STRUCTUREBOOST UP THE MARKET STRUCTURE

8/8/2019 The Sole Trading Concern

11/15

SOLE TRADER BUSINESSSOLE TRADER BUSINESS

THE SOLE TRADINGTHE SOLE TRADINGBUSINESS WORKSBUSINESS WORKS

ON CONSUMERSON CONSUMERSDEMAND FOR GOODSDEMAND FOR GOODS

BETTER CUSTOMERBETTER CUSTOMERRELATION ALSORELATION ALSOINCREASES HISINCREASES HISSALESSALES

8/8/2019 The Sole Trading Concern

12/15

DHIRUBHAI AMBANIDHIRUBHAI AMBANI

THE SUCESSFUL SOLE TRADERTHE SUCESSFUL SOLE TRADER STATED THE WORDS:STATED THE WORDS:

IDEAS ARE NO ONESIDEAS ARE NO ONES

MONOPOLYMONOPOLY

8/8/2019 The Sole Trading Concern

13/15

DHIRUBHAI AMBANIDHIRUBHAI AMBANI

A MAN WITH THE UNCOMMON CAPACITY OF

SEEING BEYOND THE FUTURE

8/8/2019 The Sole Trading Concern

14/15

MR. HIMANSHU

RAJGURU

THE UPCOMING

SOLE

ENTERPRENEUR

8/8/2019 The Sole Trading Concern

15/15

THANK YOUTHANK YOU