1. ILI AYB LTI LIABILITY

3. Co-operatives Sole Proprietor / Sole Trader Franchising Limited Companies plc and Ltd Partnerships PRIVATE Sector Privatisation & Regulation Public Corporations PUBLIC Sector Different Types of Business Organisations

4. UK Enterprises by Legal Status

5. Private Sector - aims to make a profit and is owned by private individuals from the general public Public Sector - consists of organisations run or financed by central and local government

6. Sole Traders Aims  Identify the characteristics of a sole trader Objectives  Define a sole trader  Give examples of types of sole traders  Explain 3 advantages of a sole trader  Explain 3 disadvantages of a sole trader

7. Sole Traders The most common form of business Trader = carries out a trade Proprietor = one who owns a business Definition: Any business that is owned and controlled by one person, although they may employ workers

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10. Unscramble the tiles to reveal a message. RASOLERSDET T RSLESORA

11. Have a go at the personality check questionnaire to assess whether you have the right personal qualities for running your own business. Circle your answers – a, b, or c – then check your scores at the end.

12. Watch the video clip carefully and make some notes about the business

13. Sort out the following into advantages and disadvantages of a sole trader

14. Easy to set up Fill in an income tax return – for the Inland Revenue Approval from local council – planning permission Register for VAT with Customs and Exercise You are your own boss In complete control What type of decisions do they typically make???

15. Keep all the profits They don’t have to be shared Privacy Only the Inland Revenue and Customs & Excise need to know how well the business is doing

16. Good Labour Relations Many sole traders work on their own, others employ one or maybe several workers How does this affect their labour relations???

17. Unlimited liability  This means that the owner is fully liable for all the debts of the business.  In the eyes of the law there is no distinction between the assets and debts of the business and the personal assets and debts of the owner.  [They are UNINCORPORATED].  If the business goes bankrupt then the owners are responsible for all debts and may lose their personal possessions such as car, home etc. to raise enough money to pay off the debt.

18. Difficulty of raising capital –Most small businesses find it hard to raise start-up capital –They have to invest their own savings Long working hours & Staffing issues with holidays and sickness  What happens if sales are still low?  What are the consequences if the business has to shut because of sickness? –No one to share responsibility

20. Answer the following questions and see how much you really know about Sole Traders To skip the quiz click HERE

21. 1: A sole trader is owned by two or more people. ATrue BFalse

22. 2: Which of the following is the most common form of business ownership? ASole Trader BPrivate Limited Company (Ltd) CPartnership DPublic Limited Company (PLC)

23. 3: A window cleaner working on their own could be considered a sole trader. ATrue BFalse

24. 4: An advantage of being a sole trader is that it is easy to set up the business. ATrue BFalse

25. 5: A sole trader will have lots of capital available for investment. ATrue BFalse

26. 6. How long does it take to set up as a sole trader? AAt least a year BOver two years CAt least a month DNo time limit

27. 7: Why might banks and other lending institutions be reluctant to lend to sole traders? A Because the owner might decide to sell the business in the future. B Because sole traders have a higher rate of bankruptcy. C Because the banks may have run out of money. D Because they are only owned by the one person.

28. 8: A sole trader has … ALimited Liability BInternal Liability CExternal Liability DUnlimited Liability

29. 9: An advantage of being a sole trader is that you have complete control of the business. ATrue BFalse

30. 10: Which of the following is an advantage of being a sole trader? AThe owner has unlimited liability BMany owners work very long hours CLess money is required to set them up DMoney can be difficult to raise

31. 11: An advantage for the sole trader is that you can share the responsibilities of running the business. ATrue BFalse

32. 12: With how many people does the owner of a sole trader have to share the profits? A1 BNone C10 D100

33. Read the case study on George Saunders, then answer the following questions: a) What features of a sole trader does the example of George Saunders’ business show? [2marks] b) In what way does the above case highlight the: i. Advantages; ii. Disadvantages of being a sole trader? [4marks]