business studies unit 1 sole traders

sole traders revision notes :

A soletrader isthe smallest type of business. they are owned and controlled by one person and usually do not require alot of money to startup. the money that is provided to the business is usually provided by the owner.

they are unicorporated which means that legally the owner and the business are the same. they have unlimited liability.

meaning that the owner is responsible for all debts. if debts are run up and cannot be paid by the business the owner will have to pay them. in extreme cases their possessions may be at risk of taken away. 

Advantages of being a soletrader:

• easy to setup as not much money is required from the owner to set up the business.
• as the business is owned and controlled by one person ,…