S3 Sole Traders

A Sole Trader is:

• A type of business owned and run by one person

• A partnership between two or more individuals

• A large corporation with multiple shareholders

• A government-owned enterprise

A sole trader business is financed by the sole trader investing ______.

• his/her own money

• bank loans

• government grants

• venture capital

What is one advantage of being a sole trader related to legal documents? Easy to set up - ________ legal documents needed.

• no expensive

• many

• complex

• numerous

What is one advantage of being a sole trader related to service? Can offer a more ________ service - get to know customers.

• personal

• impersonal

• generic

• detached

What is one disadvantage of being a sole trader related to liability?

• Limited liability

• Unlimited liability

• No liability

• Shared liability

What is one of the main objectives of a sole trader related to profit?

• To maximize personal income

• To minimize tax liabilities

• To expand the business

• To hire more employees

TRUE OR FALSE

Sole traders can take time off easily

• FALSE
• TRUE

TRUE OR FALSE

Sole traders need to have large sums of money to invest right away

• FALSE
• TRUE

TRUE OR FALSE

Sole traders cant ask anyone for help or advice

• FALSE
• TRUE

TRUE OR FALSE

Sole traders get to make decisions about uniform, working hours and all aspects of their business

• FALSE
• TRUE