Merits of sole trading concern are:
(i) Easy formation,
(ii) Direct motivation,
(iii) Flexibility,
(iv) Retention of business secrets and
(v) Quick decision.

Sole proprietorship is also called as Entrepreneurship.

Sole Trader is a type of business unit where a person is solely responsible for providing the capital for bearing the risk of the enterprise and for the management of business. - J.I. Hansen

The liability of the Sole Proprietorship is unlimited. When his business assets are not sufficient to pay off the business debts he has to pay from his personal property.

The various kinds of non-corporate enterprises are:
(i) Sole Proprietorship
(ii) Partnership
(iii) Joint Hindu Family Business

Legal consultancy - because the organisation would rely solely on an individual's talent and therefore he need not consult anybody else regarding his business.

A sole trader is a simple business structure whereby one individual runs and owns the entire business.

A sole tradership is the oldest form of business organisation:
It is easy and simple to organise. It is found in each and every country in the world. This type of organisation has not lost its utility even today. Sole proprietorship is a form of organisation in which an individual invests the entire capital, uses his own skill and is solely responsible for the result of his business. He may borrow money and employ assistants. But he alone owns and controls the business and bears its profit and loss. The only legal formality is to get a licence from the local authority viz, municipality, panchayat, etc., for running certain type of business. It is also known as individual proprietorship or one-man business. The person who contributes capital and manages the business is called sole trader or sole proprietor.

Since the capital is contributed by one individual only, business operations have necessarily to be on a limited scale. 

Sole Proprietorship is a form of business organisation in which an individual introduces his own capital, uses his own skill and intelligence in the management of its affairs and is solely responsible for the results of its operations.

Grocery store, medical store, craft centre, legal consultancy, internet cafe, freelance writer, tutoring, catering company are some of the examples of sole trading businesses.

Unlimited Liability:
When his business assets are not sufficient to pay off the business debts he has to pay from his personal property.

The following are the disadvantages of a Sole trader:
a) Limited Capital:
Since the capital is contributed by one individual only, business operations have necessarily to be on a limited scale.
b) Limited Managerial Skill :
(1) Single person's intelligence and experience may not help him beyond a certain stage.
(2) Since he has to focus on each and every activity, his managerial ability is bound to be limited.
c) Unlimited Liability:
1. The liability of the proprietor for the debts of the business is unlimited.
2. The creditors have the right to recover their dues even from the personal property of the proprietor in case the business assets are not sufficient to pay their debts.
d) Lack of Specialisation:
Since the business unit is small and the financial resources are limited, experts in different fields cannot be employed to secure maximum advantages.
e) Hasty Decisions:
Sole proprietor is more likely to take hasty decision as he need not consult anybody else.

(i) Ownership by one Man:
(1) This is owned by the single person.
(2) The sole trader contributes the required capital.
(3) He is not only the owner of the business but also manages the entire affairs.
(ii) Freedom of work and Quick Decisions:
1. Since the individual is himself as an owner, he need not consult anybody else.
2. Hence he can take quick decisions.
(iii) Unlimited Liability:
When his business assets are not sufficient to pay off the business debts he has to pay from his personal property.
(iv) Enjoying Entire Profit:
He strives tirelessly for the improvement and expansion of his business and enjoys all the benefits of his hard work.
(v) Absence of Government Regulation:
1. A sole proprietor concern is free from Government regulations.
2. No legal formalities are to be observed in its formation, management or in its closure.
(vi) No Separate Entity:
The sole trading concern comes to an end with death, disability, insanity, and insolvency of the individual.
(vii) Maintenance of Secrecy:
In sole proprietorship as the sole owner manages all the affairs of the business, the secrecy can be maintained easily.