Answer the following questions:

Mention any four merits of sole trading concerns.

Sole trading concerns is one of the oldest and simplest form of business organizations, it is owned and managed by a single person who not only enjoys the profits but also shoulders the losses faced by the business. Four advantages of sole trading concerns are as follows –

1. It is started by personal capital and does not require any legal formalities for commencement.

2. These businesses are directly in contact with the consumers enabling them to better understand the supply and demand patterns.

3. They provide employment to different people and enable distribution of wealth in society.

4. Business secrets are better maintained in these concerns as the ownership is under single individual custody.