1. Sole Trader Forms of Business Ownership

2. What is a sole trader? A sole trader is a business owned by one person The owner makes all the decisions about how the business is run The owner keeps all the profit, but also suffers all the losses of the business

3. Examples of sole traders Small shops Small hairdressers Accountants Can you think of any others?

4. Advantages of being a Sole Trader It is easy to set up The owner makes all the decisions The owner gets to keep all the profits Can decide what you want to sell May give credit to customers May offer a delivery service

5. Disadvantages of being a Sole Trader Unlimited liability – this means that the owner is responsible for all of the debts of the business Lack of capital can prevent expansion Owner bears all the losses No continuity of business when the owner dies Prices may be higher than in competing larger businesses Extra work involved outside of trading hours

6. Summary What is a sole trader? Can you list some examples of sole traders? List four advantages and four disadvantages of being a sole trader