2 Explain one difference between a sole trader and a private limited company. [3]

[Sir Afzal Shad]

Q2 Explain one difference between a sole trader and a private limited company. [3]

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Possible Structure:
[KN]
[AN]
[AN+]

[Shanze Arsalan]

KN: Sole trader business is a business in which one person provides the permanent finance and has full control of the business whereas Private limited companies have multiple owner/share holders.
AN:In this way less capital in invested in sole trader business as only one person is investing compared to private limited companies.
AN+:This makes business expansion easier for private limited companies compared to sole trader business

[Malik Adeesa]

[KN]:Business formation is easy for a sole trader whereas much more complicated for a private limited company.
[AN]:a sole trader requires less capital and assets but a private limited company needs a large amount of assets and capital.
[AN+]:cost of production is low for a sole trader in comparison to a private limited company.