U1- Bus Enterprise Environ- Ownership 1

The private sector enterprises are based on ownership, which is held by an individual or groups of individuals who adopt a legal status and /or sign a contract

• True

• False

A sole trader is businesses are generally "one person" businesses, commonly known as self-employed

• True

• False

Alphabet Cars is a taxi-driving business operating in East London providing taxi services to people and businesses. John opened and has been running it as a family business since last three years and John's sons aged 23 and 25 work part-time in Alphabet Cars. Therefore, Alphabet Cars is

• Sole trader

• Partnership

• Private Limited Company

• Family Trust

Alphabet Cars is a taxi-driving business operating in East London providing taxi services to people and businesses. John opened and has been running it as a family business since last three years and John's sons aged 23 and 25 work part-time in Alphabet Cars. John is thinking of expanding his business and is considering keeping personal and business assets and liabilities separate. Which structure would you advise him?

• Sole Trader

• Partnership

• Private Limited Company

• Public Limited Company

Alec Plumbing is a sole trader, therefore Alec considers himself as the only owner with limited liability. This means Alec's personally responsible for Alec Plumbing's debts

• True

• False

Alec Plumbing is a sole trader, therefore Alec can be asked to use his personal savings or sell his personal property to pay any debts, bills or payments Alec Plumbing owes.

• True

• False

Alec Plumbing is a sole trader, therefore Alec can be asked to use his personal savings or sell his personal property to pay any debts, bills or payments Alec Plumbing owes. Such a situation is called

• Limited Liability

• Unlimited Liability

• Closed Liability

• Open Liability

Charities such as Princes Trust who offer grants to young people starting their own businesses are generally Private Sector Enterprises - Sole Traders

• True

• False

While it is easy to set up sole trader enterprise and owner keeps all the profit, there could be certain disadvantages. Choose disadvantages from following statements

• It has unlimited liability, which means the "sole trader" is personally responsible for any business debts and can be asked to use his personal savings, property to pay them

• Owner is flexible to run the business, how they want and take holidays when they want

• If the business has no other employees, the business may need to close if owner is ill or on holidays

• If a business dispute arises, owner can be sued

• The owner may need to multitask and learn new skills besides running and managing the business or may need to hire others which then increases costs to the business

James wants to start his own business, He is looking to create and sell apps at his college that will help learners with their coursework. The app is ready to be sold but doesn't know how to go about starting the business. He feels discouraged and wants to give up. He gets advice from the Princes' Trust and his mentor and is now more confident. Write 3 - 5 advantages of being a sole trader that his mentor pointed out.