Sole Trader

Partnership

Private Limited Company (LTD)

Public Limited

Company (PLC)

What we will be doing over the next few weeks… When a person wants to set up a business they must decide what legal form that business will take.

Lesson ObjectivesTo know and understand what a sole trader is

To understand the advantages and disadvantages of being a sole trader.

To be able to apply the information you learn to start your Powerpoint Presentation

Definition of a Sole Trader

Sole TraderThis does not mean that only one person can

work for the business.

It means that the owner is an individual person.

Sole Traders have unlimited liability:This means that if the business fails then the

owners personal items (e.g. House, Car, TV etc) could be sold to cover the losses of the business.

Advantages of Sole TradersEasy to set upEasy to runFull ControlLow initial capital requiredKeep all of the profitsPrivacyFlexibility

Disadvantages of Sole TradersUnlimited LiabilityLack of continuityIllnessLong HoursDifficulty of raising capitalLimited specialisation

Your Presentation!Think ‘Professional Presentation’.

Look at the 2 examples here.

Which is the best?