One man control is the best form of Business organization. Do you agree with this statement explain.

Sole-tradeship or Sole-proprietorship

D.W.T defines it in the following words:

"It is a simplest form of business which is owned and controlled by one man"

In this organization a person invests his capital and devotes full time to his business. All the profit of the business goes into his pocket.

In case of loss he bears the total loss. Farmers and retailers are the examples of sole proprietorship.

Importance of Advantages :

People prefer the sole-proprietorship on the following grounds

1. Easy Formation:

Its formation is very easy because there is no any legal restriction like registration. So it can be started without the wastage of time.

2. Independence:

It is an independent form of business and there is no interference or any other person. He is the supreme authority of his business

3. Personal Interest :

A businessman takes keen interest in the business because he knows that he is responsible of profit and loss.

4. Direct Relationship :

In this business a businessman has direct relationship with the workers. He can understand their problems and tries to solve them. It increases the profit of the business.

5. Contact with Customers :

Sole trader has a direct contact with the customers and the keeps in view the likes and dislikes of the people. So he produces the according to their demand.

6. Easy Transfer:

This type of business can be easily transferred to another person. At any time a sole trader can transfer his business without any restriction.

7. Quick Decisions :

A sole trader can make quick decisions for the development and welfare of his business. So he saves the time.

8. Secrecy :

It is an important factor for the development of business. A sole-trader only can maintain the secrecy in the techniques of production and profit.

9.Entire Profit :

A solctradership is the only business where one enjoys 100% profit.

10. Entire Control:

The control and supervision of a business remains in the hands of a one person. He can do what ever he likes.

11. Credit Facilities:

A sole-proprietor can borrow the money easily because the liability of the owner is unlimited.

Saving in Cost :

Costly the functions are performed by the sole-proprietor. Sometimes he borrows the capital from his relatives without interest. So he reduces the cost of production.

13. Saving in Taxes :

The rate of taxes is very low on the soletradership, because it is impose on the income of a single person.

14. Social bencfits:

This form of business reduces the unemployment and provides public the daily necessities like fruits, milk, and vegetables near to their homes.

15. Flexibility:

A sole-trader can change the business policy at any time according the market situation. He can introduce new technique of production without the consent of any other person.

16. Easy Dissolution :

The type of business can be easily dissolved and there is no legal restriction for it.