SOLETRADERS Flashcards
SOLETRADERS (4 cards)
1
Q
WHAT IS THE DEFINITION OF A SOLETRADER?
A
A business that is owned by one person.
2
Q
WHAT ARE THE THREE KEY FEATURES OF BEING A SOLETRADER?
A
A business owned by one person
The owner invests equity into the business either from personal savings or a bank loan.
Although there is only one owner they can have many employees.
3
Q
WHAT ARE THE ADVANTAGES OF BEING A SOLE TRADER?
A
Owner keeps all the profits
The owner makes all the decisions
It is easy to set up
The affairs are kept private.
4
Q
WHAT ARE THE DISADVANTAGES OF BEING A SOLE TRADER?
A
It may be difficult to obtain finance
There may be a lack of new ideas
Unlimited liability- if the business goes bankrupt the owner might have to pay off debt with personal belongings.
