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

Features of sole trading concern are:
(i) One-man ownership and control
(ii) Small capital
(iii) Unlimited liability
(iv) Enjoyment of entire profit and
(v) No separate legal entity.

William R. Basset has said that one-man control is the best in the world only when the business is small indeed, to allow one actually to know and supervise everything in the business.

Decisions arrived at, after deep deliberations and discussions are sure to be better than that of a decision taken by one man. It is rightly said two heads are always better than one. The chances of wrong decision-making are quite high in a sole trader business. This is because of the fact that the sole trader takes all decision of the business himself without any assistance. This may lead to wrong decisions. The hasty decisions may result in loss and affect the sole trader.

Anything which affects the personal life of a sole trader affects his business also. Prolonged illness or death of the sole trader brings the affairs of his business to a stand still. If his children are interested and efficient to run the business, the sole trader business can be continued. Otherwise, it will be closed. The closure of a business will cause inconvenience to the consumers and may also result in-social loss.

It is a highly flexible type of organisation. A sole proprietorship concern is generally run on a- small-scale basis. In case a change in operation is required, it is possible without involving much expenditure. The proprietor can adapt and adjust the activities of the business to the changing trends and market conditions because the sole trader is the sole owner of his business.

The sole trader is entitled to enjoy all profits of the business. Since, he is the only person who invested money, he need not share the profit with anybody else. At the same time, he himself should bear the entire loss. So, it is said that he owns all and risks all.

According to P.K. Ghosh and Y.K. Bhushan, "The sole proprietorship is a form of organisation in which an individual introduces his own capital, uses his own skill and intelligence and is entirely responsible for the results of its operations".

All business undertakings which are directly or indirectly engaged in the transfer or exchange of goods, are aimed at earning profit and they are exposed to various types of risks.

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

Decision arrived at, after deep deliberations and discussion are sure to be better than that of a decision taken by one man. It is rightly said two heads are always better than one. The chances of wrong decision- making are quite high in a sole trader 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.

The non-corporate enterprises are sole trading concern, partnership firm and Joint hindu family business.

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