(i)    Ease of Formation. The establishment of a sole tradership concern is easier as compared to other forms of organization. A person with small amount of capital can start the business without undergoing much legal formalities.

(ii)    Flexibility. The sole trader is free to change the nature and scope of his business operations, whenever the situation demands. The flexibility is available because the sole trader is the sole owner of the business.

(iii)    Quick Decision. Sole proprietorship concern facilities quick decision-making and prompt action.

(iv)    Secrecy. It is easy to preserve secrecy in business. The important clues of business developed by the sole trader by his fact, foresight and skill can be kept as a closely guarded secret. In this form, there is also no need to disclose accounts or any other material fact to the public.

(v)    Personal Touch. A sole trader can maintain intimate personal contacts with his customs. Direct contacts will enable the proprietor to know the nature of his customers and their tastes, likes and dislikes. Close personal touch with the customers enhances the reputation of the firm.

(vi)    Direct Motivation. In this form of business organization, the proprietor takes all the profits and bears all the risk and losses. Thus, there is a direct relationship between effort and reward.

(vii)    Independent Way of Life. Sole proprietorship offers an indecent way of life for people who have necessary skills, but do not wish to serve others. This provides an excellent opportunity of self-employment to persons of small means with personal skills.

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