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A sole trader is one type of business organization. Or I would say a sole trader is among the many types of organization that exist in a business environment. If you are a sole trader, it means that you own the business, and any profits from the business belongs to you. It's important to know that there are other types of business organizations like partnership or limited companies. A partnership is where you and another partner owns the business. ( it may not necessarily be 50% each, it depends on the agreement of each partner ). Limited companies on the other hand, are companies that can offer shares to raise capital. Although this is complicated, you need to understand that while sole trader can earn all the profits, it will face difficulties in raising funds for expansion, that's the reason limited companies are formed, they can raise funds from the public.

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โˆ™ 2009-05-21 16:54:15
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Q: What is a sole trader?
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it is not easy for a sole trader to get a loan so easily as the business is new and the bank ownt know if the sole trader will be able to repay the loan.


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Sole trader owns the business solely. It order to make the business survive he needs employees for his business. That means sole trader provides employment to society.


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