Sole Trader Advantages And Disadvantages

Question 1

Advantage 1

Answer 1

The owner keeps all profits

Question 2

Advantage 2

Answer 2

It’s easy to set up

Question 3

Advatage 3

Answer 3

Business affairs are kept private

Question 4

Disadvantage 1

Answer 4

It may be difficult to obtain finance

Question 5

Disadvantage 2

Answer 5

There may be a lack of new ideas as a result of working in isolation.

Question 6

Disadvantage 3

Answer 6

• Unlimited Liability , if the business goes bankrupt the owner could lose their own personal possessions to cover debt