Explain why _____ chose to start his new business as a sole trader. (6 marks)

Command word: Explain

This means that in order to score the 5-6 marks range, a detailed response with reasons for how something will benefit for improve a particular phenomenon is necessary. 

The 6-mark question can be answered by 3 benefits of being a soletrader, each worths 2 marks with 1 being the justified reason and the other being the further explanation of the reason:

1. Soletraders have full control over the business (1 mark), since they will be the only owner and will run the business without the interference of others (another 1 mark).

2. Easier way to set up a business (1) since soletraders deal with less legislations and regulations compared to other typs of businesses (1).

3. Soletraders can make decision quickly (1) since they do not need to confer with other decision makers (1).

Hence this should allow the respondent to get a total of 6 marks for the question.

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