Sectors Of The Economy-sole Traders

Question 1

Sole trader definition

Answer 1

A buisness owned and run by one person

Question 2

Sole trader key features

Answer 2

Owned by one private individual

Controlled bt the private induvual

Financed by their own personal savings or possibly a bank loan or grant

Question 3

Sole trader advantages

Answer 3

Easy to set up

Owner got to keep all the profit

Owner that to make all of their own decisions

Question 4

Sole trader disadvantage

Answer 4

Unlimited liability- if the business goes into that the individual owner is responsible for paying it back this could mean their personal possessions are taken to pay for this

Raising finance can be difficult will often look at sole traders as high risk

Workload and responsibilities cannot be shared with another owner