4th Sole Trader vs Partnership

Which type of business has only one owner?

• Sole Trader
• Partnership

Which type of business can have two or more employees?

• Sole Trader
• Partnership
• Both
• Neither

Which type of business has a greater stability and expertise to run the business?

• Sole Trader
• Partnership
• Both
• Neither

Which type of business has to share profits, responsibility and liabilities?

• Sole Trader
• Partnership
• Both
• Neither

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

The term for money invested in a business is

• finance
• capital
• investment
• shares

A sole trader has responsibility for

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

Unlimited liability means

• the business is closed down because of too much debt
• the owners' personal possessions can be used to cover the firm's debts
• the bank will refuse to give loans to the business
• the business will struggle to attract investors

An advantage of being a sole trader is

• you can take time off whenever you want
• you can grow your business really easily
• you can receive large amounts of finance from loans
• you receive all the firm's profit for yourself

A disadvantage of being a sole trader is

• a heavy workload creates stress and pressure
• a second opinion on important decisions is always available
• arguments and disagreements can harm the progress of the business
• the owner gets a smaller share of the profits