Sole Trader Essay

1370 words - 5 pages

Btec Business AssignmentIntroductionSole-TraderA Sole-Trader is a
business organisation.

Btec Business Assignment



A Sole-Trader is a business organisation which is owned and managed by
one person. Implied in this is that ownership is under one person and
this individual could employ a lot of people to work for him.

One key feature of a sole trader is that of limited liability. A
limited liability refers to the situation whereby he or she looses
both the invested capital and private property when the business winds
up. Advantages for a sole trader are that profits would not have to be
shared and decision making would be easy because the sole trader would
not have to consult anyone in decision making.

For a sole trader things would be slightly easy in the sense that
there would be less confusion as everything would go by the way the
individual wants the business to be. It is also a big responsibility
as there would be a need to have a high-level of personal interest and
if the individual does not show this, then it could be a big factor as
to why the business could go bust.


A partnership is a type of business organisation which is owned and
managed by two or more people, usually not any more then 20 people.

The key feature of this type of business is that of profit sharing.
This brings me onto the Partnership Act 1890 which outlines the main
rules of a business in partnership:

* Profits and losses to be shared equally

* No interest on capital

* Equal amount of capital contribution

The deed of partnerships outlines the rights, responsibilities and
duties of partners. Like a contract.

This contract would consist of such things as the name of the
business, the location, the ration of profit sharing and the times
which each partner has to put into the business. It would also contain
the amount of money etc which would be needed to be contributed by
each partner.

Private limited company

A private limited company specialises mainly in expanding business
growth, these companies are often much larger than a partnership
organization and consist of influencing globalisation.

Private limited company is an organization whereas any one can own it
if they obtain the majority of shares off the company they trade there
stock to in the stock market.

Dependant upon the size of the private limited company the sources of
finance available for them would be such things as suppliers, banks,
factoring, leasing and hire purchase companies, government grants and
loans, venture capital institutions, private share issues and so on,
you will find more information on the main aim of this task just below
on sources of finance.

The disadvantages for a private limited company could be that it could
be difficult to find suitable shareholders and also could be
disagreement between existing shareholders.

Limited liability Company

A limited liability...

Find Another Essay On Sole Trader

Legal Structure of a Business Orgnanisation

1984 words - 8 pages Legal Structure of a Business Orgnanisation Business organisations are the different legal forms a business can adopt. The key distinction is that some businesses provide limited liability for any debts the business incurs. Others have unlimited liability - which obviously doesn't [IMAGE]Unincorporated Incorporated Up Arrow Callout: Sole-trader Up Arrow Callout: Partnership Up Arrow Callout: Private

The Internal Organisation of A Business.

573 words - 2 pages usually do not want to hold total responsibility for the business whilst still being able to do their own work.A sole trader is a person that runs a business alone. They have total control of the business and often do not even have any employees.To help me choose which, I am going to look at the advantages and disadvantages of each of the above.PartnershipAdvantagesDisadvantagesResponsibility of running a business can be shared with another person. One

Business Proposal for a Retail Shop Selling Sports Clothing and Equipment

768 words - 3 pages business plan will have to be made after careful consideration, which will inform readers about the business, its name, location, aims and other important information. It will also hold some information about the business finance and what type of business it will be and what the business will do. The business will be a sole proprietorship, meaning that it will be controlled and managed by the sole trader. I have decided to

a frustrating experience

1593 words - 6 pages sole trader, Mr. Rochester, for construction services. Mr. and Mrs. Atwal were the claimants whereas Mr. Rochester was the defendant in this case. In July 2006, the contract was formed. Mr. Rochester undertook extensive building work to White Lodge, Mr. and Mrs. Atwal's house in Wombourne, and the work began in August 2006. Mr. Rochester had been known to Mr. and Mrs. Atwal and their relatives for a period of time. Mr. and Mrs. Atwal and their

The Pros and Cons of Various Orgnizational Structures

1831 words - 7 pages Introduction There are many types of organisational structure a business may decide to adopt. This assignment will examine the four main different business structures and present the advantages and disadvantages of each one. The business structures that I will be examining are as follows: The Sole Trader The partnership The Private Limited Company (LTD) The Public Limited Company (PLC) Sole trader A sole trader is an organisation, which

How to Buy a Limited Company

2055 words - 8 pages public, where as public limited companies shares are traded on the stock exchange and thus can be brought by the public. A sole trader has unlimited liability in the business this means there is no distinction between the assets of the business and the owners personal assets such as home, car or other belongings, what this means is if the business goes bankrupt the owner may have to sell of some of their personal belongings

Business Management: The Nature of Business Activity.

2868 words - 11 pages profit over the coarse of each year. Generally speaking, entrepreneurs are also risk takers and in order to grow larger and increase sales or market share are likely to risk factors of production i.e. land, labour, capital and enterprise.Q3(a). *Sole Trader. Key features: - Known sometimes as sole proprietors, they are an unincorporated enterprise within the private sector of the economy. There are a number of advantages for Sole Traders i.e. they

Business studies coursework, unit 1, task 1- the business at work. Project on Boots plc

2042 words - 8 pages capital is raised through sales of shares. An example of a Ltd company is Fujitsu Ltd.Some other firms in the Private sector are as follows:Sole Trader- also known as Sole ProprietorUnlike other business formats, Sole Traders (and partnerships) can start trading straight away, although certain types of businesses may need a licence to trade. The meaning of a Sole Trader business is portrayed in the name, a Sole Trader, single person ownership

Economics Essay

530 words - 2 pages enjoyed increasing economies of scale and reduced unit costs. Many firms then merge with other firms, through horizontal, vertical and conglomerate integration. These processes may ultimately increase the concentration of, and lead to increases in the efficiency of, the industry.Let's take the example of a small corner store, owned by a sole trader. If business is good, the owner will decide to expand. As the business continues to expand, it will

Game Station

5661 words - 23 pages Game Station I have chosen to have a Game station because I have lots of games and I know a lot about them. Also my uncle has a game shop so I can get ideas of him. Task 2- Legal forms (1) Sole Trader A person who runs the business on his own also gets to keep prophet of business. Sole traders are normally small businesses, and by becoming a sole trader you risk lots

Business Analysis of

5125 words - 21 pages Business Analysis of My business is a sole trader, it will be a sports shop called, specialising in Hockey goods and accessories. It will be selling trainers and Hockey shoes, sticks, clothing, bags, protection, goalkeeping kits, coaching and fitness equipment and accessories. The shop will provide some services such as: * Stick re-gripping and maintenance. * Personalised team

Similar Essays

The Types Of Business Ownership Essay

1265 words - 5 pages The Types of Business Ownership This report is about the advantages and disadvantages of different types of business ownerships. Introduction I am going to write about the advantages and disadvantages of different business ownerships including: * Sole Trader * Partnership * Franchise I will include the definitions of some of the business ownerships. Main Body SOLE TRADER

D And F Fresh Milk Essay

4796 words - 19 pages -corporate company in a great deal. The non-corporate business ownership is of two (2) types, they are (i) sole-trader and (ii) partnership business. To understand the differences between D and F fresh milk limited and non-corporate business ownership we shall compare D and F fresh milk Ltd with the different types of non-corporate business ownership. D AND F MILK LIMITED NON-CORPORATE BUSINESS OWNERSHIP D and F fresh milk limited is an

Corporations Law Assignment: Lee's Business Expansion

1361 words - 5 pages Question 1: Part a It is legal to enforce Dozey’s charge against Sleepy Head Pty Ltd. Facts: Dozey, a sole trader owns a business called ‘Sleepy Head’. He incorporated a company called ‘Sleepy Head Pty Ltd’ later, and this company purchased the business ‘Sleepy Head’ from Dozey with a substantial block of shares and debentures secured by a charge over all of the company’s assets from Dozey. ‘Sleepy Head Pty Ltd’ was not successful and went

Aiosd Essay

828 words - 3 pages Preliminary Topic: Nature of a BusinessTypes of Businesses: Classification of BusinessOutcome:P1 discusses the nature of business, its role in society and types of business structureStudents learn about:Types of businessClassification of business- size - small to medium enterprises (SMEs), large- local, national, global- industry - primary, secondary, tertiary, quaternary, quinary- legal structure - sole trader, partnership, private company