N5 Business - Sole Trader

What are the 3 sectors of economy?

• Private sector

• First sector

• Public sector

• Third sector

Which types of businesses are included within the private sector?

• Charities, Social Enterprises, Youth Clubs, Local Authorities

• Partnership, Police, Schools, Charities

• Sole trader, Partnership, LTD, PLC

• Sole trader, LTD, PLC, Voluntary

A sole trader is...

• A business with one employee

• A business selling one product

• A business with one owner

• A business with one shop

What does 'unlimited liability' mean?

• If the business fails, you will not lose personal possessions

• If the business fails, you will lose personal possessions

A sole trader has responsibility for...

• Preparing the accounts for the business

• Selling the products

• All aspects of their business

• Completing Spreadsheets

An objective of a sole trader is...

• To sell more shares on the stock market

• To survive in tough economic times

• To increase the dividend given to investors

• To maximise the amount of loans they can receive

An advantage of being a sole trader is...

• You can take time off whenever you want

• You can receive large amounts of finance from loans

• You can grow your business really easily

• You receive all of the business' profit for yourself

A disadvantage of being a sole trader is...

• You must discuss your ideas with other partners in the business

• You have unlimited liability

• You can't get any help from banks

• It takes a long time to make any important decisions

An example of a sole trader business is...

• Morrisons

• Amazon

• Hairdresser

• Teacher

How does a sole trader fund their business?

• They rely on their partner to invest money

• They use their own savings and loans

• They always get offered a free grant

• They sell shares for their business