sole trader ( private sector )

Question 1

define sole trader

Answer 1

this is the most common form of business organization, it is a business operated by one person

Question 2

3 advantages of sole trader

Answer 2

• owner can keep all profit as it does not need to be shared
• there are few legal requirements when setting up a sole trader business
• owners have complete control over the business so there is no need to consult anyone else before decision making

Question 3

3 disadvantages of sole trader

Answer 3

• unlimited liability
• the owner does not have anyone to discuss business matter with
• there is no continuity