Business Test - Sole Traders

Question 1

What is a Sole Trader?

Answer 1

A sole trader is a business that is owned by one person.

Question 2

Key Features of a Sole Trader? (3)

Answer 2

1.It’s a business owned by one person
2. The owners invests equity into the business either from personal savings or a bank loan
3. Although there is only one owner they can have many employees

Question 3

Advantages of a Sole Trader? (4)

Answer 3

1.The owner gets to keep all of the profits
2.The owner makes all the decisions.
3.It is easy to set up.
4.Business affairs are kept private