The merits of sole proprietorship firm are:
Lone benefits: A sole trader gets to keep all of his business’ profits.
Minimal legal requirements: When starting a business, there are only a few legal requirements. The most common requirement is a trading licence, which may be obtained for a nominal charge.
Confidentiality: A solo trader takes pride in his business’s main secrets. These are usually the trade secrets that make his company successful, and no one else has access to them.
Final answer:
Hence, the three merits of sole proprietorship firm include lone benefits (keeping all profits from business), minimal legal requirements (requirement of only few documents), and confidentiality (pride of a solo trader).