MERITS OF SOLE PROPRIETORSHIP FORM OF BUSINESS ORGANISATION:

(a) Easy to Form and Wind Up: It is very easy and simple to form a sole
proprietorship form of business organization. No legal formalities are required
to be observed. Similarly, the business can be wind up any time if the proprietor
so decides.
(b) Quick Decision and Prompt Action: As stated earlier, nobody interferes in
the affairs of the sole proprietary organization. So he/she can take quick
decisions on the various issues relating to business and accordingly prompt
action can be taken.
(c) Direct Motivation: In sole proprietorship form of business organizations,
the entire profit of the business goes to the owner. This motivates the proprietor
to work hard and run the business efficiently.
(d) Flexibility in Operation: It is very easy to effect changes as per the
requirements of the business. The expansion or curtailment of business activities
does not require many formalities as in the case of other forms of business
organization.
(e) Maintenance of Business Secrets: The business secrets are known only to
the proprietor. He is not required to disclose any information to others unless
and until he himself so decides. He is also not bound to publish his business
accounts.
(f) Personal Touch: Since the proprietor himself handles everything relating to
business, it is easy to maintain a good personal contact with the customers and
employees. By knowing the likes, dislikes and tastes of the customers, the
proprietor can adjust his operations accordingly. Similarly, as the employees are
few and work directly under the proprietor, it helps in maintaining a harmonious
relationship with them, and run the business smoothly.