1. Single Ownership

• The business is owned and operated by one individual.
  
• There is no distinction between the owner and the business.s
  
• All profits and losses belong solely to the owner er.
  
• The owner makes all business decisions independently.
  
• No partners or shareholders are involved.d
  

2. Ease of Formation

• It is the simplest form of business to establish
  
• Requires minimal legal formalities to start
  
• No mandatory registration under corporate laws
  
• Basic licenses like GST or local registrations may apply.
  
• Can be quickly started and closed without complex procedures
  

3. Full Control and Management

• The owner has complete authority over daily operations.
  
• No need for consultation or approval from others
  
• Quick and flexible decision-making is possible.
  
• Direct handling of customers, suppliers, and staff
  
• Personal involvement in all aspects of the business
  

4. Personal Liability

• The owner is personally responsible for business debts.
  
• There is no legal separation between personal and business assets.
  
• In case of losses, the owner’s personal property can be used to repay liabilities.
  
• Financial risks are entirely borne by the proprietor.
  
• No legal shield from business obligations
  

5. Lack of Continuity

• The business does not have a perpetual existence.
  
• It may dissolve upon the owner’s death or incapacity.
  
• There is no legal provision for automatic succession.
  
• Continuity depends on the owner’s interest and availability.
  
• Succession requires creating a new legal entity if needed.