Unit 1

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Sole Trader

Advantages

  • Easy and cheap to set up
  • Can respond quickly to changes
  • Owner takes all profits, increasing motivation
  • Independence

Disadvantages

  • Unlimited liability
  • Limited skills
  • Limited capital

Evaluation

Being a sole trader is good for someone who wants complete control of their business, however if something goes wrong it can havr conflicting effects on them as the owner aswell.

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