sole trader

?
View mindmap
  • Sole Traders
    • Advantages
      • easy to set up-no legal formalities
      • owner has complete control
      • owner keeps all profit
      • able to chose time and work pattern for working
      • able to establish close personal relationship with staff and customers
      • business can be based on the interest or skills of the owner
    • Disadvantages
      • unlimited liability- owners assets potentially at risk
      • business often faces intense competition from bigger firms
      • owners not necessarily espacialised in important areas of a business
      • difficult to raise additional capital
      • long hours of work to make business pay
      • lack of continuity-since no legal status,business dies as the owner dies

Comments

No comments have yet been made

Similar Business Studies resources:

See all Business Studies resources »See all Business Plans resources »