Detailed slides that leaves enough room to inquire more about the Forms of Ownership, particularly the Sole Trader Grade 10 content. Enjoy:)

1. Forms of
ownership
by MNM MATSAPOLA
Sole proprietorship
Grade 10

2. What is a Sole trader/ proprietor
 A sole owner of a business.
 This means that there is no distinction between the owner and
the business.
 Profits and/or losses belong to the owner.
 'A sole trader is a person who sets up and owns their own business.
They may decide to employ other people but they are the only owner.
A sole trader has unlimited liability.'
 Examples; Carl’s corner shop,
Kota joint etc

4. QUICK QUIZ
– WHAT IS A SOLE TRADER?
– MAKE YOUR EXAMPLES OF SOLE TRADERS.
– DO YOU EVER WISH TO START YOUR OWN BUSINESS?

5. Characteristics of a sole
proprietor
 It is owned and managed by a single person.
 It is not a legal entity and cannot sue or be sued, so
creditors/ claimants sue the owner.
 All assets belong to the owner
 Profit and losses belong to the owner
 The owner pays tax in his/her personal capacity.
 All decision are made by the owner.

6. Advantages
 The owner can start doing business at anytime.
 The owner runs the business as he sees fit.
 The success, profits, belong to the owner
 Profit retention – Sole traders retain all the profits of
their business.

7. Disadvantages
 The business cannot continue to exist if the owner dies or
retires.
 Capital Is limited to the amount of money the owner has
access to.
 owner bears all risks and losses.

8. conclusion
 It is easy to stat a sole proprietorship is easy to start because it does
not require a lot of capital
 Decision-making is quick but it could not be effective since the owner
makes the decision alone, it’s better when a lot of people give input.

9. References
– https://www.google.com/search?q=sole+trader&source=lnms&tbm=isch&sa=X&ve
d=0ahUKEwi3uPrAvp_dAhXTY8AKHXl4COUQ_AUICigB&biw=1280&bih=918#imgrc=
Wck2raDTbHiizM:
– http://www.smarta.com/advice/starting-up/starting-your-own-business/what-is-a-
sole-trader/
– https://www.thecompanywarehouse.co.uk/blog/advantages-and-disadvantages-of-
a-sole-trader
– https://www.google.com/search?q=SOLE+TRADER&source=lnms&tbm=isch&sa=X&
ved=0ahUKEwjjgaW50J_dAhVMKMAKHWT4CbwQ_AUICigB&biw=1280&bih=918
– https://www.slideshare.net/SindisiweMandlenkosi/forms-of-ownership-power-
point-presentation

10. More References
– https://www.slideshare.net/AndisiweMkwambi/formsofownership-
170828145641
– https://www.slideshare.net/VukaniMorris/forms-of-ownership-111770050
– https://www.slideshare.net/MatshidisoMqubane1/forms-of-ownership-
112818967