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What is a Sole Trader?
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Tecsave History
Year
Type of Ownership
No. Of Outlets
1947
Sole Trader
1
1957
Private Limited Co (Ltd)
56
1965
Public Limited Co (plc)
187
What is a Sole Trader?
The sole trader type of business is owned by one person. The sole trader can employ people but these employees are unlikely to be involved in the control, financing or decision-making of the business
This type of organisation has unlimited liability which means that there is no limit to the amount of the business's debts that the owner is responsible for. If the business should fail, the sole trader may have to sell personal possessions- e.g. house and car- to pay off the business's debts.
Advantages:
? It is easy to set up a business as a sole trader as there are no complicated forms or procedures to follow before you can start.
? Sole Traders usually need less capital to start up.
? Sole traders are their own bosses.
Disadvantages:
? Small businesses are seen as more of a risk by financial institutions, so it can sometimes be
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