Definitions
Advantages/Disadvantages
Examples
100

What is a sole trader?

An individual who owns his/her personal business with no additional help.

100

What happens to the business when the owner decides to go on a holiday or becomes ill?

Lack of continuity

100

What famous french fashion designer started as a sole proprietoreship in 1910? 

Coco Chanel 

200

Define unincorporated

The owner is the same legal entity as the business itself

200

Name any 2 reasons why sole trading is popular in America

- Easy to start

- No extra taxes

- You become your own boss

- Easy to exit

200

Which famous fast food chain known for their root beer started as a sole proprietorship? 

A&W

300

What does unlimited liability mean?

Owner is personally responsible for all loses and debts of the business.

300

Name two important disadvantages of a sole proprietorship?

- Unlimited liability

- Limited sources of finance (difficult to secure funds beyond personal savings) 

300
Name 3 sole trader examples for teenagers.

Babysitting

Lawn mowing 

Youtuber/Gamer 


400

What is start-up capital?

The funding from the individual, usually from personal savings and borrowing.

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