GROWTH DEVELOPMENT CHILD
DEVELOPMENT AND LEARNING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Sole trader
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partnership
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Sole trader disadvantages
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Sole trader advantages
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Detailed explanation-1: -It is that type of business organization which is owned, managed and controlled by a single owner. The word “sole” means “only” and “proprietor” notes to “owner”. A sole proprietor is the beneficiary of all profits. All risks are to be borne by the sole proprietor.
Detailed explanation-2: -Sole Proprietorship This is a business run by one individual for their own benefit. It is the simplest form of business organization. Proprietorships have no existence apart from the owners.
Detailed explanation-3: -A sole trader is a business owned by one person. They are usually small in size. Hairdressers, butchers, and electricians often operate as sole traders. Sole traders rely on their own savings, bank loans or loans from friends and family to finance their business.
Detailed explanation-4: -A sole proprietor is someone who owns an unincorporated business by himself or herself. However, if you are the sole member of a domestic limited liability company (LLC), you are not a sole proprietor if you elect to treat the LLC as a corporation.
Detailed explanation-5: -A sole trader can only be one individual. If two or more individuals agree to join together in business, then they shall form a partnership. The individual is responsible for all decision making. There is little distinction between the business owner and the business.