Morgan's software vendor is a business that is personally owned and managed by the owner. The business is located in Ohio near the Ohio state university where it deals with reselling software from major companies involved in the mass production of computer software. The owner of the business manages the business from an office located on the outer East end of the Ohio University grounds where the main target market is the population of the university in general.

The business is a sole proprietorship since it only has one owner managing the business with the help of several employees who work in the office. The management of the business is done from the location of the business as the office is located inside the same premises as the business. A sole proprietor business has several advantages and disadvantages thus the business also has challenges it faces. A sole proprietorship business gives the owner the rights to expand the business structure or change it in any way they wish; the business could be turned into a corporation by involving other parties in decision making and ownership of the business. The owner can increase the partners of the business without any prior notification. The owner of the business can end the business if they wish.

Sole trading however also has its limitations such as unlimited liability of debts since there is no legal feature between private and business assets. The owner of the business faces a hard time as the business entirely depends on them for the day-to-day decisions on all the activities. Gathering capital for a sole proprietor is more of a task since the capital required is only raised by one person. A sole proprietor also has a problem with retaining high-caliber employees.

Sole trading has a legal requirement of being registered under one owner unless the second partner is a relative or a legal marriage partner. The business is registered and legally taxed under one owner as he is entitled to all the profit of the business.