3. SOLE TRADER SHIP
➢SOLE TRADER is a business
that is owned by one person,
but however it can be operated
by more than one person.
4. Example of Sole Trader:
• Grocery shop/comer shop
• Restaurants
• Petrol Station
• Hairdressing service
• Gardner service
5. Advantages of Sole Trader Business:
• In a Sole Trader Business profit are not shared.
• A Sole Trader Business is easy to establish and manage.
• Decision making is speedy in the Sole Trader ship
Business.
• Sole Trader Business offer customer special attention.
6. Disadvantages of Sole Trader Business:
• Debt incurred by the business must borne by the
owner.
• A Sole Trader normally find it hard to raise capital.
• Long working hours for the manager.
• Lack of competitiveness.
• Limited managerial skill.
7. Characteristics of Sole Trader:
• Ownership - The business is owned by a single individual.
• Management and control; Finance – The necessary capital to run
the business is provided by the sole owner.
• Risk – The proprietor himself bears all the risks. No one else has
any stake in business.
• Sole trader have few legal stipulation regarding formation,
certain types of Sole proprietorship must ensure that
government regulation is followed.