Welcome to Gaia! :: View User's Journal | Gaia Journals

definition:
A sole trader is self-employed and has complete control of the business. The owner is totally responsible for his success of failure.

characteristics:
-owned by one person
-don't have a limited liabillity
-can start trading whenever he likes
-simple of all business forms

the owner: one person/ sole trader
control of the organisation: the owner

advantages:
-small start up costs
-profits are all kept
-profits belong to the owner
-flexibility
-independence
-owner manages and controls the business
-the organisation of a small business is more simple
- there is less bureaucracy
-full responsibility

disadvantages:

-unlimited liability
-difficulties in raising money
-slow growth
-high risks
-lack of continuity
-falling ill and going on holiday can be a problem
-little capital to expand
-you have much work - stress