BUSINESS ADMINISTRATION
BUSINESS ECONOMICS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Which one of the following is an advantage for an entrepreneur for starting a business as a sole trader?
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Limited liability means that losses can be minimised
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Owner has control of decision making
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It is easier to raise finance than other types of business structure
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Less risky than other types of business structure
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Explanation:
Detailed explanation-1: -Advantages of sole trading include that: you’re the boss. you keep all the profits. start-up costs are low.
Detailed explanation-2: -Advantages of a sole proprietorship Minimal paperwork and low set-up costs are two major benefits of having a sole proprietorship. In addition, there is the ease of maintaining it. In fact, according to the SBA, it’s the simplest and least expensive business type you can establish.
Detailed explanation-3: -Advantages of a sole proprietorship Sole proprietorships are easy to establish and get started. The owner retains complete control of the business. There are no corporate income tax payments. They are less expensive than other business types.
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