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  1. Quick Decision Making: A sole proprietor enjoys substantial degree of freedom in making business decisions. In addition, the decision is made at the appropriate time because there is no need to hold up as his/her efforts as he/she is the sole recipient of all the proceeds. There is no need to share the profits as he/she is the single proprietor. Hence, this provides utmost incentive to the sole trader to work intensely.
  2. Confidentiality of Information: Sole decision making power enables the proprietor to keep all the information associated to business operations a secret and uphold confidentiality. A sole trader is certainly not bound by law to publish the organization's financial records.
  3. Direct Incentive Merits: A sole proprietor unswervingly reaps the benefits sole proprietorship offers numerous advantages. Some of the vital key points are as follows:
  4. Sense of Accomplishment: There is a personal fulfillment implicated in working for oneself. The fact that one is responsible for the accomplishment.
"A Refreshing Start: Coca Cola Owes its Origin to a Sole Proprietor!

The product that has given the world its best-known taste was born in Atlanta, Georgia, on May 8, 1886. Dr. John Stith Pemberton, a local pharmacist, produced the syrup for Coca-Cola®, and carried a jug containing the new product to Jacobs' Pharmacy, where it was sampled, marked "excellent" and placed for sale for five cents a glass as a soda fountain drink. Dr. Pemberton had never realized the prospective of the beverage he created. He slowly sold portions of his business to several partners and, just prior to his death in 1888, had to sell his remaining interest in Coca-Cola to Asa G. Candler. An Atlantan with great business expertise, Mr. Candler proceeded to buy additional business rights and gain absolute control. On May 1, 1889, Asa Candler published a full-page advertisement in The Atlanta Journal, proclaiming his wholesale and retail drug business as "sole proprietors of Coca-Cola ... Delicious. Refreshing. Exhilarating. Invigorating." Sole ownership, which Mr. Candler did not really attain until 1891, needed an investment of $ 2,300. It was only in 1892 that Mr. Candler created a company called The Coca-Cola Corporation."

  1. Ease of Formation and Closure: There are very few or minimal legal formalities as far as sole proprietorship is concerned since they are not governed by any special law. The owner can start and close his company as and when he desires.

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