Sole Proprietor

Definition of 'Sole Proprietor'

An individual who is running a business without the help of partners. The advantage of this way of doing business, is that control is in the hands of one person, as they are both owner and manager.

A drawback of this can be that in many industries, those businesses that thrive have the largest economies of scale, and as a sole proprietor it may not be possible to have sufficient capital to create the required level of efficiency.

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