Advantages and Disadvantages of a Sole Trader


	Advantages and Disadvantages of a Sole Trader
	Advantages The owner has sole managerial and financial control This form of organisation is simple to set up There is no requirements to make information about the business public The owner can introduce new and varied trading activities to register the change The owner has complete independence and can run the business how he or she likes Profits are not shared They are easy to set up	Disadvantages The owner must make all the decisions There are no partners with whom to share the decisions The owner is personally liable for any debts which the business cannot pay (unlimited liability) This form of business has a low status in the business community The owner does not get much support as financial institutions see the business as more risky than limited companies The business dies with the owner The owner has to work long hours and he or she don't get many holidays either
	Evaluation

The owner has sole managerial and financial control
This form of organisation is simple to set up
There is no requirements to make information about the business public
The owner can introduce new and varied trading activities to register the change
The owner has complete independence and can run the business how he or she likes
Profits are not shared
They are easy to set up

The owner must make all the decisions
There are no partners with whom to share the decisions
The owner is personally liable for any debts which the business cannot pay (unlimited liability)
This form of business has a low status in the business community
The owner does not get much support as financial institutions see the business as more risky than limited companies
The business dies with the owner
The owner has to work long hours and he or she don't get many holidays either

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