This document defines a sole trader business as one that is owned and operated by a single individual. Some examples provided include grocery shops, restaurants, petrol stations, barber shops, and gardening/hairdressing services. Key advantages are that profits are not shared and decision making is quick, while disadvantages include the owner bearing all debts and risks alone. Characteristics are single ownership, management, capital provision, and risk borne by the sole proprietor. The document asks questions to test understanding of these concepts.

1. Introductory Activity

2. Sole Trader Business
 Group Members: Deshane Willis
Hopetona Clarke

3. Definition of Sole Trader
 Sole Trader is a business that is
owned by one person, but however it
can be operated by more than one
person.

4. Examples of a Sole Trader
 Grocery Shop/ corner shop
 Restaurants
 Petrol Station
 Barber shop
 Hairdressing service
 Gardner service

5. Advantages of Sole Trader
Business
 In 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 business.
 Sole trader business offer customers
special attention.

6. Disadvantage 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 Skills

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
the business.
 Sole trader have few legal stipulation
regarding formation, certain types of
Sole proprietorship must ensure that
government regulation is followed

8. Culminating Activity
 Questions:
1. Define the term Sole Trader
2. Give two examples of a sole trader
business in the community of Malvern.
3.Explain two advantages of a sole trader
business.
4.State two disadvantages of sole trader
business.
5.Give two characteristic of a sole trader
business.

9. Continuing
 Why is it a sole trader business
necessary in a community?