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