Business Environment

Question 1

What are the types of business organizations ???

Answer 1

-sole proprietor/trader
-partnership
-limited liability company

Question 2

What is a sole trade business???

Answer 2

This is a business owned by one person who assumes all the assets of the business as well as all the debts

Question 3

Features of a sole trader

Answer 3

-only one person provides all needed capital and manages it alone
-simplest and most common type of business enterprise

Question 4

Advantages of a sole trader

Answer 4

-business is easy to set up, control and manage
-requires small amount of capital to set up
-Owner makes independent and quick operational decisions
-business affairs are kept private except when completing tax returns