Sole Trader

?

Sole Trader

Advantages

  • Self-Employed
  • Freedom of Choice
  • A lot of profit
  • Keep all profit
  • Get more money
  • Power and control
  • Suitability
  • Relatively cheap to start up
  • Low capital required
  • Working hours to fit around you

Disadvantages

  • Only you in charge of the business - no one to rely on
  • High work load
  • Long hours
  • Work slower - struggle with high demand
  • lack of capital
  • Continuity - if the owner wants to sell the business someone must want to
  • Unlimited Liability - potential to lose personal possessions
  • Illness - could result in business closing for a period of time if there is no one to cover. Therefore, will not make sales resulting in a loss of profit.

Evaluation

Sole Trader - One person who owns the business. Although it is owned by one person, it will not stop them from employing other people with relevant skills to work in the business

Comments

No comments have yet been made

Similar Business Studies resources:

See all Business Studies resources »See all Sole Trader resources »