Case Study on Sole Trader

Mr. Vijay Sharma is a business man. He has the business of readymade garments. Mr. Vijay started his business with a capital of Rs. 5 lakhs. He is the only owner of the business and so he is the one who manages the business. Whenever any decisions are to be taken related to business Mr. Vijay alone takes all the decisions as he is the owner. His business earns a profit and he is the one who enjoys the profit. 

But whenever there is a loss he alone has to bear. There are also debts of his business for which Mr. Vijay is personally responsible as he has to pay it from his personal property. There is no separate legal status in a sole trading concern. Legally sole trader and his business organization are one and the same. Mr. Vijay business of readymade garments is limited to the local market as it is a small scale business.

What various features of a sole trader can you note down from this case study?

Name few advantages and disadvantages of being a sole trader.