Sole proprietorship refers to a form of organization where business is owned, managed and controlled by a single individual who bears all the risks and is the only recipient of all the profits. Merits of this form of organization include quick decision making, direct incentive, personal satisfaction, and ease of formation and closure. But this form of organization suffers from limitations of limited resources, unstable life span of business, unlimited liability of sole proprietor and his/her limited managerial ability.
In a sole proprietorship, there is no legal distinction between the individual and the business. Thus, every asset is owned by the proprietor, and they have unlimited liability. Examples include writers and consultants, local restaurants and shops, and home-based businesses.
Some Examples are: Small Shops and Boutiques, Artisans and Musicians, Independent Contractors, Bookkeeping, Home Healthcare, Financial Planners, Landscaper, Computer Repair Services, Catering Company etc.