A sole trader may take on a partner if he decides to expand his business. Say if a sole trader in electronics believes that there is room in his business for growth and wants to expand but is not sure what to do, then he may go out and look for a partner to help him expand and run the business with him. Partnerships share both the profits and losses with each other whilst running the business.
A sole trader can get capital from personal savings or from a family member. A number of them are able to borrow money from a financial institution if they can pay from a secondary source.
a slave owner/trader
A slave trader buys or sells slaves
advantages* easy formation there is no legal formalities for its formation and lso does not require a huge amount of capital. * quick decisions the sole trader being the supreme authority can take decisions independently without consulting others.* better personal contact as it is small scale business, the owner can have personal contact with the customer as well as his employees. * flexibility if any change in the business is required he needs not consult with anyone. * less expensive management. the sole trader performs most of the work relating to his business. so expenses can be brought down to a minimum. * business secrets can be maintained.he can maintain secrets of his business because he need not disclose them to anyone. * no sharing of profit as it is one man business , he can enjoy the entire profit of the business.disadvantages* shortage of capital the capital resources of a sole trader are naturally limited. therefore expansion of the business is difficult. * unlimited liability the liability of the sole trader is unlimited or not limited to his capital contribution. that means his private properties are also liable for his business debts . * lack of continuitythe future of this kind of business is most uncertain. long illness, death, insolvency, insanity of the sole trader will surely disturb the business. * lack of management abilitythe managerial ability of a sole trader is limited. he may not be master of all. * lack of economies of scale.because of limitation of finance and managerial ability, a sole trader operates on a small size. due to this , it does not enjoy the economies of large scale buying as well as increased sales
The reason why partnerships are able to attract more capital than sole proprietorship, is because the article of partnership may specify that the profit be divided equally or by any other arrangement suit able to the partners and proprietorship state ahead in time in the papers that how the profits (losses) will be divided.
Sole trader it means Sole trade agence?
Sole trader it means Sole trade agence?
Sole trader it means Sole trade agence?
advantages of a sole trader
a sole trader has a limited liability. :)
BECAUSE IF YOU MESS UP YOUR PARTNER GOT YER BAK FOOL
Yes body shop is a sole trader.
Lord Sugar is a famous sole trader in the UK.
Sole proprietor
A sole trader can employ as may people as is necessary
Sole trader just means you own and run a business or company entirely by yourself and you own it all, of course you hire workers for it but there's no partner with you to split the profits you make because you own it all and it all entirely goes to you.
the characterististics of a sole trader are: -unlimited liablitity -only one person controls the business which is called the sole trader - financial infomration is only visible for the owner of the business - the sole trader can keep all profit made by the business - it is a unicorporated business