Q.Define Sole Proprietorship and state any two of its features.

Sole Proprietorship is the simplest and oldest form of business organisation, owned and run by just one person.

Sole Proprietorship is a form of business organisation that is owned, financed, managed, and controlled entirely by one individual, known as the sole proprietor or sole trader. The proprietor alone takes all business decisions, contributes the capital (from personal savings or borrowing), bears every business risk, and keeps the entire profit for himself or herself.

Two of its important features are:

1. Unlimited liability — since the business has no identity of its own separate from the owner, the owner's personal assets can be used to pay off business debts if the business assets fall short.
2. No separate legal entity — the law does not distinguish between the proprietor and the business; they are treated as one and the same person for all legal purposes.
   ✓Final answer

   Sole Proprietorship is a business owned, financed, and controlled by one individual. Two features: unlimited liability of the owner, and no separate legal entity from the owner.

A common mistake is naming a merit (like 'quick decisions') instead of a definitional feature when asked to define the term — keep the definition and the list of features distinct.