4. Sole trader
It is a business managed
or owned by only one
person. The owner is
responsible for day to day
running of the business
5. ADVANTAGES AND DISADVANTAGES
• ADVANTAGES
• DISADVANTAGES
•
Easy to establish
•
Start up costs
•
Owner takes all the profit
•
Responsible for all the functions
•
Makes decision on his own
•
Unlimited liability
6. Partnership
It is a business owned by the minimum of
two people to the maximum of twenty.
7. Advantages and disadvantages
• Advantages
• Disadvantages
• shared responsibility
• Capital is contributed
• Easy to establish
• Unlimited liability
• Lack of continuity