BUSINESS
ORGANIZATION
THIS WONDERFUL PRESENTATION WAS DESIGNED
AND PREPARED BY THE FOLLOWING STUDENTS:
AREES UMESH, AHMED RASHID ALABRI, ALI
JAWAD RAMIN, MOHAMMED OMAR,
MOHAMMED MAWJI AND YAHYA ABDI AHMED
LESSON OBJECTIVES:
• IN THIS SESSION TODAY WE WILL COVER THE FOLLOWING
CONCEPTS:
DEFINITION OF SOLE TRADE
EXAMPLES OF SOLE TRADE
 FIVE FEATURES OF SOLE TRADE
ADVANTAGE OF SOLE TRADE
DISADVANTAGE OF SOLE TRADE
OWNERSHIP IN SOLE TRADE
RISK IN SOLE TRADE
LIABILITY IN SOLE TRADE
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SOLE TRADE
• So guys, sole trade is the most common form of
business organization which majority of people
knows it. This type of business is practiced by
many people since it has very few legal
requirement to set it up, but do you know the
definition of sole trade?
DEFINITION OF SOLE TRADE{OWNERSHIP}:
• Sole trade also known as sole proprietorship it's
a type of business owned and controlled by a
single person only-although the sole trade can
gain support from his family members. The
person who owns this business is called sole
proprietor
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EXAMPLES OF
SOLE TRADE
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FIVE FEATURES OF
SOLE TRADE
1.
The business is owned and controlled
by a single person only- although
family members can support
2. In the sole proprietorship business, the
sole owner has unlimited liability. In
this case, the owner is himself liable to
pay all the liabilities. If he takes a loan
for its business then he will be liable for
all the debts.
3. Independent decision making- the
owners has his/her own decision
whether to invest more, go for a holiday
or etc.
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CONTINUATION:
4.Sole Risk Bearer and Profit Recipient
• A sole proprietor is only the one who bears all risks which are related to its business.
• All the profits or losses which are earned from the business are to be enjoyed by the sole
owner.
• By this point, we say sole trade is in a very high risk since all loads are upon a single human
being which keeps the owner in a difficult time to sustain all loads risking k for the survival
and growth of the business.
5.little capital requirement for startup - little capital is required since sole trade usually the
business is small
ADVANTAGE
OF SOLE
TRADE
1.
Quick decision making– A
sole proprietor has the
freedom to make any
decision. Therefore, the
decision would be prompt as
they don’t have to take the
permission of others.
2. Confidentiality of informationBeing only the owner of the
business, it allows him/her to
keep all the business
information to be private and
confidential.
DISADVANTAGE OF SOLE
TRADE
1. Unlimited Liability
• The major demerit of a sole proprietorship is that the owner has unlimited liability.
• If the sole owner becomes fails to pay the debts, due to the failure of a business, the
creditors would not only claim from business assets but also from his personal estate.
2.Limited Managerial Ability
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• The sole proprietor has to accept all the responsibilities to carry out its business.
• Sometimes the proprietor has to perform all the managerial functions like sales,
purchase, marketing, selling, dealings with clients, etc.
THANK YOU
THANK YOU
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