Sole Trader
- Created by: Emma Peppercorn
- Created on: 18-04-13 16:36
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- Sole Trader
- A business owned by one person (but may employ others)
- A sole trader has full responsibility for the financial control of their own business and for meeting running costs and capital requirements.
- Advantages
- Freedom- the sole trader is their own boss and has complete control over decisions.
- Profit- The sole trader is entitled to all the profit made by the business.
- Savings of fees- There aren't any legal costs like you'd get with drawing up a partnership agreement or a limited company document.
- Disadvantages
- Risk- There's no one to share the responsibilities of running the business with.
- Time- Sole traders often need to work long hours to meet tight deadlines.
- Unlimited Liability- The sole trader is responsible for all the debts of the business.
- A business owned by one person (but may employ others)
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