This statement
is True.
i. In Sole trading
concern all activities are owned, managed and controlled by a single man.
ii. He needs
not to share his profit or risk to anybody. Thus he can enjoy the entire profit
earned by him.
iii. In a similar
way, if he suffers a loss he is alone to bear it. If business liability exceeds
the business asset, then his private property is used to settle his business
debts.
iv. That is
why the liability of a sole trader is unlimited.
