Sole trader Flashcards
1
Q
Sole trader
A
A person who is the single owner of the business keeps all profit but unlimited liability
2
Q
Who owns the business?
A
The sole trader owns the business
3
Q
How many owners?
A
Only one owner who
4
Q
Who finances the business?
A
The owner finances the business
5
Q
What liability is there?
A
The owner is liable for all profits lost and all debt which will effect the owners belongings (unlimited liability)
6
Q
Who keeps the profit?
A
The sole trader keeps all profit made
7
Q
What happens if the owner dies?
A
The business ends
8
Q
Name some advantages
A
- All profit can be kept to the sole trader
- You are your own boss
- to establish your business not many forms need to be filled in you just simply begin trading
9
Q
Name some disadvantages
A
- if the owner dies the business ends
- if the business ends up in debt it tis the owners fault (the sole trader)
- own belongings are at risk if you are in debt
