What are the advantages and disadvantages of a sole trader business model?

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Advantages:
-Easy to set up- no legal formalities
-Owner has complete control-not answerable to anyone else
-Owner keeps all profits
-Able to choose times and patterns of working
-Able to establish close personal relationships with staff and customers
-The business can be based on the interests and skills of the owner-rather than working as an employee for a larger firm

Disadvantages:
-Unlimited liability-all owner’s assets are potentially at risk
-Often faces intense competition from bigger firms
-Owner is unable to specialise in areas of the business that are most interesting-is responsible for all aspects of management
-Difficult to raise additional capital
-Long hours often necessary to make business pay
-Lack of continuity-as the business does not have separate legal status, when the owner dies the business ends too

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