DEPARTMENT OF TECHNICAL EDUCATION

ANDHRA PRADESH
Name : R.Dasharatham
Designation : Lecturer
Branch : D.C.C.P.
Institute : GPW, Warangal
Year : I year
Subject : Business Organization
Subject code : CCP-104
Topic : Forms of Business Organization-
Sole Trading
Duration : 50 mts
Sub topic : Sole Trading
Teaching Aids: : P.P.T.

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Objectives
On completion of this lesson, you would be
able to know:

 Forms of Business Enterprises

 Characteristics of sole trading concern

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Recap

 Meaning of Business,Commerce,
Trade & Industry
 Significance of Commerce, Industry
& Trade
 Trade and Aids to Trade

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Types of Business Organisation

Mainly there are four types of Business Organizations:

 Sole trader

 Partnership

 Joint Stock Company

 Cooperative Organisation

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Sole Trader:
•He is an individual
•Introduces his own capital
•Bears all the risk
•Enjoys all profits in management of its affairs

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Features of Sole Trader:

• Oldest form:
It is the oldest form of business organisation
2. Capital Contribution:
•Entire capital is brought in by him alone.
•His own or borrowed
3. Premises:
Own or rented

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4. Profit sharing:

All the profits and losses belong to him only

5. Management and Control:

He himself is the manager, Promoter, Financier

and worker also.

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6. Unlimited Liability:

The Liability of the Sole trader is unlimited to the

extent of his assets

7. No Legal Restrictions:

There are no legal restrictions for starting a Sole

trading concern.

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8. Restricted Scope:

The scope of activities of a Sole Trader is

necessarily limited when compared with the other
organizations.

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Summary
We have discussed about:

 Various forms of business organisation

 Definition of Sole Trader
 Characteristic Features

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 Quiz

• Sole Trader is :
a) Partner
b) individual businessman
c) a Joint stock company
d) All the above.

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2. Which of the following is the feature of
the Sole trading proprietorship
1. Sharing of work

2. Profit sharing.

3. Legal restrictions.

4. Capital Contribution solely by the Owner

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Frequently asked Questions

2. List the types of Business Organizations.

4. What is “Sole Proprietorship”?

6. List the features of sole trader.

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Assignment

2. Visit your nearby Kirana or Fancy Shop owned by

an individual and observe the features and list out.

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Thank you

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