The characteristics of the sole proprietorship form of business organisations are:
- It is the simplest form of organisation as it does not involve any legal formalities.
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- It is owned and controlled by a single individual.
- The individual assumes all sorts of risks exposed to the business.
- The liability of the sole trader is unlimited.
- The sole trader enjoy unlimited freedom of action and decide everything quickly.
- The business unit is not separate from the sole trader.