Sole Traders Flashcards
Who owns the business
The person who started the business
Number of owners in the business
One person
Who controls the business
The sole trader controls the business
Who finances the business
Owner of the business can finance the business or other people you employ can
What liability is there
Unlimited liability
Who keeps the profit
The sole trader keep the profit but he can invest it back into the business
What happens if the owner dies
The business dies with them but can pass parts on to family members
Advantages
Small and easy to set up
Generally only a small amount of money is needed to set up
Wage bill will be low
Disadvantages
No one to share the responsibility of in the business
Work long hours
Developing the business can be limited by the amount of money personally avaible
