Business Ownership

A sole trader may employ as many people as required in the business.

• true

• false

Finance in a sole trader business is usually supplied by

• shareholders

• the owner

• a partner

• venture capitalists

A sole trader is not a separate legal entity to the business they run

• true

• false

Unlimited liability means

• the owner is responsible for the business operations

• the owner does not have to repay the debts of the business should it fail

• the owner is personally liable for all of the debts should the business fail

• selling personal assets

A sole trader will receive all the profits of the business

• true

• false

List THREE advantages of being a sole trader (Do NOT include receives all profits)

Explain how a sole trader is allowed more privacy in its financial operations

Explain why a sole trader may want to stay small.

Explain why is there a lack of continuity in a sole trader business.

Partnerships are popular with

• sole traders

• large organisations

• shareholders

• professional people such as lawyers