Business Coursework The name of my business will be zed's takeaway. They type of business my business will be is a sole trader

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Business Coursework

The name of my business will be zed’s takeaway. They type of business my business will be is a sole trader. I will be using up my own capital to start my business (my own money). The sole trader is the most simplest business to develop as it initially consists of only you and has very little legal formalities, obligations or constraints attached to this form ownership as opposed to other forms; in fact it is just a case of informing the tax inspector and contributions agency of your intentions and you can begin to trade. You also need only a small amount of capital and you're off!

remaining as a sole trader has many advantages, mainly being that you are able to give a more personal service to your customers and you are able to make changes within your business very quickly due to there is little or no bureaucracy there being only one person to make the final decision; so remember this fact and exploit it.  Other advantages include having complete control over the business and its profits; you are able to use any money the business brings as you deem fit without having to justify what you are spending.

However, as the expansion of the business depends on the amount of capital you are personally able to inject, you may find investing in the growth of my business very difficult, as capital is often difficult to find.  In addition, as a result of the inability to assist expansion, your competitors would have the edge over your business; for example, businesses with greater access to investment would be able to adapt more quickly to market demands leaving you struggling to compete.  Larger organizations could change the prices without feeling the impact as much as the sole trader would

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Multi-nationals would be able to cope with demand and supply more readily and far more quickly that a small sole trader, as greater investment would allow them to buy equipment, increase production, adopt new technology and develop new ideas.  The pressure put upon the sole trader must not be ignored, and if you are thinking of becoming self-employed as a sole trader you must address this issue as it could ultimately threaten the survival of your business.

Apart from the pressures placed on the sole trader by the larger organisations, you are also fully liable financially, and the need ...

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