Sole Trader Business Quiz

What is a sole trader?

• A large corporation

• A business owned by multiple people

• A business owned and run by one person

• A non-profit organization

Which of the following is an advantage of being a sole trader?

• High set-up costs

• Limited liability

• Quick and easy to set up

• Shared decision-making

What type of liability does a sole trader have?

• Limited liability

• No liability

• Unlimited liability

• Shared liability

Which of the following is a disadvantage of being a sole trader?

• Low level of responsibility

• Unlimited liability

• Easy to raise capital

• Limited control over business decisions

What tax does a sole trader pay on their earnings?

• Corporate tax

• Sales tax

• Income tax

• Property tax

Which of the following is NOT typically a sole trader?

• Electrician

• Hairdresser

• Photographer

• Large retail chain

What is one of the roles a sole trader might perform?

• Investor in other businesses

• Board member of a corporation

• CEO of a multinational company

• Multiple roles in the business

Which of the following is a characteristic of a sole trader?

• Limited decision-making power

• Shared ownership

• High set-up costs

• Personal responsibility for debts

What is a common feature of businesses set up as sole traders?

• They are usually large corporations

• They are often start-ups or small businesses

• They are non-profit organizations

• They have multiple owners

Which of the following is a potential stress factor for sole traders?

• Low level of risk

• No control over business decisions

• High level of responsibility

• Limited working hours