Sole Trader

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  • Created by: megangore
  • Created on: 30-03-16 10:23
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  • Sole Trader
    • Definition
      • A business owned and operated by one person, although they can employ staff
    • Advantages
      • there are few legal regulations when setting up the business
      • the owner has complete control over the business
      • the owner has close contact with the customers
      • incentives to work hard i.e. he keeps all the profits
      • the owner can choose his holidays, pay, breaks, etc.
    • disadvantages
      • no one to discuss business matters with
      • the business has unlimited liability (if the company has debts, possessions can be taken
      • hard to raise finance as there are no other owners to put capital into the business
      • the business is likely to remain small
      • there will be a lack of specialist skills due to the business size
      • lack of continuity in event of death, sickness and holidays

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