Sole traders and partnerships

A sole trader is

• a business with one employee
• a business selling one product
• a business with one owner
• a business with one shop/office

The term for money invested in a business is

• finance
• capital
• investment
• shares

Profit is

• the money that the business makes from selling its products
• the money that the business receives from the bank
• the money that the owners use to start up the business
• the money the business makes once all costs are paid

A sole trader has responsibility for

• preparing the accounts of the business
• all aspects of their business
• selling the products
• completing spreadsheets

An objective of a sole trader is

• to sell more shares on the stock market
• to increase the dividend given to investors
• to survive in tough economic times
• to maximise the amount of loans they can receive

Unlimited liability means

• the business is closed down because of too much debt
• the owners' personal possessions can be used to cover the firm's debts
• the bank will refuse to give loans to the business
• the business will struggle to attract investors

An advantage of being a sole trader is

• you can take time off whenever you want
• you can grow your business really easily
• you can receive large amounts of finance from loans
• you receive all the firm's profit for yourself

A disadvantage of being a sole trader is

• a heavy workload creates stress and pressure
• a second opinion on important decisions is always available
• arguments and disagreements can harm the progress of the business
• the owner gets a smaller share of the profits

A grant is a source of finance given by

• the bank
• the local council
• the stock exchange
• the First Minister

An advantage of a business receiving a grant is

• the interest rates are very low
• they can apply for several grants every year
• it is usually a very large amount
• they do not have to pay it back