Private Enterprises are enterprises owned and managed by private individuals. They are also called Private Sector Enterprises. They include the following:
This is a one-man business organisation. It is the simplest unit of business organisations. The proprietor often provides the capital, organises the business, bears its risks, and enjoys the profits.
Features of Sole Proprietorship
- It is the simplest unit of business organisations.
- The business is owned and controlled by one person.
- The sole proprietor (owner) enjoys all the profits and bears all the losses and risks the business yields.
- The proprietor has unlimited liability.
- The capital is provided by one person.