Sole Trader Flashcards
(4 cards)
What is a sole trader?
A sole trader is an individual who owns an enterprise (sole proprietorship).
Mention 5 characteristics of sole traders.
- ) Owned and managed by one individual.
- ) Has no continuity.
- ) No legal personality.
- ) Easy and cheap to establish.
- ) Owner has unlimited liability.
List five Advantages of sole traders.
- ) The owner is in complete control of the business.
- ) All profits belong to the owner.
- ) Owner works hard for business to succeed.
- ) No formal documents / legal requirements needed except of local authorities.
- )Improved relationships with customers and employees because of personal contact.
List five advantages of sole traders.
- ) Owner concentrates on talents and could neglect other business functions.
- ) Owner is often overworked.
- ) Business has no continuity.
- ) Owner has unlimited liability.
- ) Capital is limited to what owner supplies.