Sole Trader
- Created by: megangore
- Created on: 30-03-16 10:23
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- Sole Trader
- Definition
- A business owned and operated by one person, although they can employ staff
- Advantages
- there are few legal regulations when setting up the business
- the owner has complete control over the business
- the owner has close contact with the customers
- incentives to work hard i.e. he keeps all the profits
- the owner can choose his holidays, pay, breaks, etc.
- disadvantages
- no one to discuss business matters with
- the business has unlimited liability (if the company has debts, possessions can be taken
- hard to raise finance as there are no other owners to put capital into the business
- the business is likely to remain small
- there will be a lack of specialist skills due to the business size
- lack of continuity in event of death, sickness and holidays
- Definition
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