Ajay is the sole owner of a shoe manufacturing factory. He took loan of ₹20 lakhs from Ace finance company for the expansion of his business. Because of continuous losses however, he was not able to repay the loan on time. Assets of the business were not enough for repaying liabilities in full. As a result, the finance company asked him to repay their loan. He refused to do so on the ground that the loan was taken by his business and not by him for his personal use. The company filed a case against him. The court gave decision in favour of the company on the ground that Ajay was operating as the sole proprietor and a sole proprietor did not have a separate entity distinct of his own. The court further stated that Ajay had unlimited liability and held him liable to repay the loan even by selling his personal property, if need be.
Identify and explain two features of the form of business organisation formed by Ajay by quoting the lines from the case.