Sole traders

A sole trader is

• a business with one employee
• a business selling one product
• a business with one owner
• a business with one shop/office

A sole trader has responsibility for

• preparing the accounts of the business
• all aspects of their business
• selling the products
• completing spreadsheets

A sole proprietor has to share the profits made by the business. True or False?

• True

• False

Select TWO true statements that relate to a sole trader.

• Sole traders have limited liability

• Sole traders get to make all their own decisions about the business

• Sole traders may find it harder to raise funds for the business

• Sole traders usually get more holidays than partners or directors

Which type of business can have two or more employees?

• Sole Trader
• Partnership
• Both
• Neither

Which type of business has the most trouble getting financing?

• Sole Trader
• Partnership
• Both
• Neither

Select the true statement about sole traders.

• They are run by and employ one person.

• Most small businesses are sole traders.

• All sole traders are public companies.

• Most charities are sole traders.

Unlimited Liability is

• The owner has to pay off all the debts of the business. To the extent that their private assets may be sold to cover the businesses debts.

• When a company's shareholders have to pay only their share value to meet debts incurred by the company.

Sole traders have unlimited liability. True or False?

• False

• True

What are 3 of the benefits of being a sole trader?

• Easy to establish

• Keep all the profit

• Get to make all the decisions

• Unlimited liability