According to William R. Basset, “The one-man control is the best in the world if that one man is big enough to manage everything”. But a business must be small indeed to permit one man actually to know and to supervise everything.
The danger is always present that he things he knows when really he does not know. And naturally there is not permanency in this kind of management if the one man is away or ill, the business stops and of course when he dies, business vanishes or has to be rebuilt.
The sole proprietorship form of organization is best in the world due to following merits:
(a) Simple to form and work;
(b) Secrecy of business;
(c) Flexibility in operation;
(d) Quick decision;
(e) Sole claim on profits;
(f) Effective management and control;
(g) Free from legal restriction;
(h) Personal relations with customers;
(i) Harmonious relations with employees;
(j) Development of personal qualities;
(k) Tax advantage
(l) Ease of dissolution.