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
• Easy to establish
• Owner takes all the profit
• Makes decision on his own
• DISADVANTAGES
• Start up costs
• Responsible for all the functions
• Unlimited liability
6. Partnership
It is a business owned by the minimum of
two people to the maximum of twenty.