• types of businesses including sole traders, partnerships, private limited companies, public listed companies, social enterprises and government business enterprises

Question 1

Describe the features of a Sole Trader

Answer 1

• One individual owner
• Owner and entity one and the same (unincorporated business)
• Unlimited liability - owners personally liable for business debts
• Owner can access all profits, but bears all risk
• Can be difficult to raise capital
• Difficult for owner to take time off

Question 2

Define Sole Trader

Answer 2

A sole trader is a small business, owned and operated by a single proprietor, often with the primary objective of making a profit.