Instructions
There are advantages to sole trader ownership. Show your understanding by explaining each of the advantages listed in the tables, to allow viewing of suggested answers.
Advantages
Easy to set up
Greater owner control
Keep all profit
Flexibility of working hours
Easy to run
Can be set up immediately, and no complicated forms to be filled in.
The owner has complete control of the business and can make any changes they want. They are their own boss and do not need to follow any instructions from somebody else.
All the profits made by the business are kept by the sole trader. They do not have to share the profit with anybody else. This may motivate them to work hard as the keep all the rewards.
As they are the boss they can decide when they work. The hours of work can be planned around their lifestyle and family.
A sole trader is the easiest form of business to run. Many sole traders will do their own accounting so there will be no need to employ accountants. Being in sole charge means decisions are straight forward.