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What do you mean by no sepratre entity in sole proprietorship

Posted by Shubham Awtani 5 years, 4 months ago

CBSE > Class 11 > Business Studies

2 answers

Yogita Ingle 5 years, 4 months ago

No Separate Entity

According to the accounting system, the owner and the business are considered as two separate entities.
But the law does not make any distinction between the sole trader and its business.
Hence, without the sole trader, the business has no identity because he is the only person who performs all the business activities.

Gaurav Seth 5 years, 4 months ago

The sole proprietorship is the simplest business form under which one can operate a business. The sole proprietorship is not a legal entity. It simply refers to a person who owns the business and is personally responsible for its debts. A sole proprietorship can operate under the name of its owner or it can do business

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