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‘‘SOLE TRADERSHIP’’
Group Members: ATIF KHAN(1872) & MASAM AKRAM(1811)
Lecturer: ‘‘MAAM AQSA CHEEMA’’
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.
Example of Sole Trader:
• Grocery shop/comer shop
• Restaurants
• Petrol Station
• Hairdressing service
• Gardner service
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.
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.
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.

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Sole Tradership.pdf

  • 1.
  • 2. ‘‘SOLE TRADERSHIP’’ Group Members: ATIF KHAN(1872) & MASAM AKRAM(1811) Lecturer: ‘‘MAAM AQSA CHEEMA’’
  • 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.