Sole proprietorship is a form of business organisation where one individual introduces capital, uses own skill and intelligence, takes all profits and assumes all the risks of the business. The individual person is the sole owner, manager, controller and the risk-bearer of the business.
image source: livingwithinyourharvest.files.wordpress.com/2011/11/sole-prop.jpg
This form of business organisation is otherwise called as one-man business, individual entrepreneurship, individual proprietorship and the sole trader. This is the oldest and simplest form of organisation. This form of organisation used to get simplest form of organisation. This form of organisation used to get enough significance in the early stage of human civilization and still occupies a pivotal position in the business sphere.