Sole Trader Flashcards
1
Q
What is a sole trader
A
A sole trader is any business that is owned controlled by one person however it does not stop them from hiring employees
2
Q
Examples of sole traders
A
Hairdressers Plumber Corner shops Builders Electricians Carpenter
3
Q
Advantages of a sole traders
A
You get all the profits You have all the control and don’t have to ask someone else’s opinion on anything You can set one up with little finance It is easy and cheap to set up All the financial information is private
4
Q
Disadvantages or a sole trader
A
Some sole traders might find it difficult to grow there business as they have little capital
If the owner of the business falls ill there is no one to go to work for him
The hours of work are long
If there is no one to buy or continue the business then the business will cease to exist
