Q.A sole trader wants to keep his business plans confidential from competitors. Which feature of Sole Proprietorship helps him do this?

A sole proprietorship is a business that is owned, managed and controlled by a single individual who alone bears all the risks and receives all the profits — sole means only and proprietor means owner. It is the simplest and most popular form, especially suited to small, personalised businesses like a neighbourhood stationery shop, beauty parlour or retail store.

Its defining features flow from being one person's business:

• Ease of formation and closure — no separate law governs it, so it can be started or wound up with almost no legal formality.
• Unlimited liability — the owner and the business are not legally distinct, so personal assets can be used to settle business debts.
• Sole risk-bearer and profit-recipient, with absolute control over every decision. …