Question:
Write the characteristics of sole trading.
Write the characteristics of sole trading.
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Sole trading offers flexibility but carries high personal risk.
Updated On: Nov 7, 2025
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Solution and Explanation
Step 1: Sole trading is owned and managed by a single individual who bears all profits and losses.
Step 2: The owner has unlimited liability, meaning personal assets can be used to settle business debts.
Step 3: The owner has full control over decisions, but capital is limited to personal funds or loans, and management is handled personally without formal structure.
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