The owner of the sole proprietorship is the sole decision maker of his business.

Question

Justify the following statement:

The owner of the sole proprietorship is the sole decision maker of his business.

Answer 1

1. A sole trader does business alone. 

2. He invests his own capital, skill and intelligence in the management of business. 

3. A sole trader is the only manager of business. So he is the sole decision maker of his business. 

4. He is not answerable to anyone and need not consult anyone for doing business. 

5. There is no external interference. 

6. Therefore, he can take quick decisions and prompt actions and take advantage of profit – oriented situations. Thus, sole trader is the only decision maker and therefore has complete control on business.