Advantages and Disadvantages of Sole traders


	Advantages and Disadvantages of Sole traders
	Advantages Decision making is faster. Enjoys independence and being in control Business is usually straight forward to set up. All of the profits belong to the owner. Easy to establish legally	Disadvantages The owner has unlimited liability for the Debts, could lose not only business assets but personal property as well, eg house, car. Expansion is limited because it can only be achieved by the owner ploughing back profits or through loans. The owner usually has long working hours, little holidays and the owner could become ill.
	Evaluation A sole trader is the only person responsible for the business, they are generally small and have a limited amount of capital to invest.

The owner has unlimited liability for the Debts, could lose not only business assets but personal property as well, eg house, car.
Expansion is limited because it can only be achieved by the owner ploughing back profits or through loans.
The owner usually has long working hours, little holidays and the owner could become ill.

A sole trader is the only person responsible for the business, they are generally small and have a limited amount of capital to invest.

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