What is one advantage and one disadvantage of being a sole trader?
Advantages: The business is cheaply and easily formed as there is no long legal process. Owner gets to keep all the profits. Owner gets to make all the decisions.* Close links with both employees and customers. Financial affairs are kept private.Disadvantages: Unlimited liability which means debts of the business can extend to personal possessions. Responsible for all the losses. Sole traders have to raise their own capital and can have difficulty getting loans. Sole traders have no one to share decisions with.* Hard work and long hours. Lack of continuity. *Some points can be positive and negative based on explanation.
CS
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