Sole Trader Business Quiz

How many people own a sole trader business?

• 3

• 2

• 1

• 20

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

What is unlimited liability?

A sole trader has responsibility for

• preparing the accounts of the business

• all aspects of their business

• selling the products

• completing spreadsheets

A sole proprietor has to share the profits the business makes. True or False?

Select TWO true statements that relate to a sole trader.

• Sole traders have limited liability

• Sole traders get to make all their own decisions about the business

• Sole traders may find it harder to raise funds for the business

• Sole traders usually get more holidays than partners or directors

Which type of business has the most trouble getting financing?

• Sole Trader

• Partnership

• Both

• Neither

Unlimited Liability is?

Sole traders have unlimited liability.

• TRUE

• FALSE

What are 3 of the benefits of being a sole trader?

• Easy to establish

• Keep all the profit

• Get to make all the decisions

• Unlimited liability