State any four merits of Sole Trading Concern.

1. Easy Formation : A sole trading concern can be easily formed. Not much legal formalities are needed to start a sole trading concern. A person who is competent to enter into contract can start a sole trading concern. 

2. Prompt Decision Making: A sole trader can take all decisions by himself. There is no external interference. As he can take quick decisions, prompt actions is also possible. This Organisation is suitable for business where quick decisions have to be taken. Ex. Share Trading. 

3. Flexibility : The sole trader can make changes in business easily. He can expand or curtail business activity, whenever needed. He is the only person to take decisions in business. There is a lot of flexibility in sole trading concern.

4. Minimum Government Regulations : Sole trading concern need not follow any Special Act. There are not much legal formalities needed for forming and closing a sole trading concern. Only the general law of the country has to be followed. It states that a person doing sole trading business: 

• must be a major (above 18 years) 
• must be of sound mind 
• must not be disqualified by any law to do business.