Monday, 26 September 2016

Advantages: and Disadvantages:of Sole Trader

Sole Trader
Owner: One, with or without assistance of employs.
Capital: Limited and provided by loans or personal savings.
Liability: Unlimited.
Status: No legal entity.
Scale of operation: Very small.
Registration: No legal formalities.
Tax Burdon: Low.
Examples: Food stall, laundry and tailor.
1. Simple formation.
2. Easy management.
3. Owner is his own boss.
4. All profit is retained by the owner.
5. Low taxes.
6. Labour intensive.

1. Unlimited liability.
2. Uncertain life.
3. Resourcefully not very strong.
4. All burden of management is on the owner.

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