Sunday, 8 January 2012

Sole Trader

The simplest form of business organisation that is owned and operated by an individual. The owner has unlimited liability.

Benefits-

  • Easy to set-up and give a personal service 
  • Owner independent-can make quick decisions
  • Minimum amount of paperwork
  • Knows the customers-helps to avoid bad debts
Drawbacks- 
  • Unlimited liability 
  • Long hours, no cover for holidays/sickness
  • Capital may come from savings
  • Needs business skills
  • Business ends on death

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