Sole Traders - Advantages and disadvantages table in A Level and IB Accounting

Skip to content

Get Revising

Created by: Cblakey
Created on: 17-05-17 15:47

Sole Traders

Advantages

Faster decision making
Independence
Quicker and cheaper to establish
All profits belong to sole trader
Competitors know less about the business's success as the accounts don't have to be published

Disadvantages

Unlimited liability - can lose both business's assets and their own personal possessions
Capital is limited to the wealth of one individual. May limit business growth.
Have to work long hours and have poor holidays and rewards
May feel isolated
Ownership cannot be changed

Evaluation

Sole traders have many advantages and disadvantages: faster decision making, all profits belong to the sole trader, however they have unlimited liability and may feel isolated.

Comments

No comments have yet been made