Sole Traders

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Sole Traders

Advantages

  • 100% control of the business.
  • Decide on working hours.
  • No arguments over business decisions.
  • The business can easily come to an end if the sole trader chooses to.
  • Personal enjoyment of the sole trader
  • Profits only belong to the owner

Disadvantages

  • One person is liable for the whole business and its debts -  they have unlimited liability.
  • Limited amount of capital and have to put their own money into the business.
  • No one to consult with when making decisions.
  • May not be able to keep accurate financial records and may have to hire someone to do so.
  • Can work long hours, have few holidays and get very poor rewards.
  • The business ends when the owner retires or dies.

Evaluation

Depends on the financial stability of the individual and their personal views whether to stay as a sole trader. 

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