IGCSE, A Level Business Student Forum

[KN] You are the head.
[AN] This eliminates the need of taking opinions which can be a hectic process.
[AN+] Thus, this will improve efficiency and save alot of time.

[KN] Can keep all the profit w/o the thought of sharing.
[AN] This can result in expansion opportunities and reinvesting to make it more successful.
[AN+] Thus this will help increase market share and brand image.

Kumail Alvi wrote: ↑Wed Nov 01, 2023 12:49 am [KN] Full control
[AN] Sole traders take complete control of decision-making to directions to employees
[AN+] They don't need to consult anyone for decisions and due to fewer interruptions, the owner has better control of businesses.

[KN] Direct profits
[AN] Sole traders do not have to share profits, unlike shareholders.
[AN+] This allows owner to earn more profit and will enable them to reinvest in businesses.

2nd analysis point isnt much different from the the 2nd knowledge point

ayyan ali wrote: ↑Wed Nov 01, 2023 6:02 pm [kn] sole trader can make his own decisions about the business.
[an]sole trader did not have to worry about the partners as he can make his own decisions and can implement changes without the need of consensus froma partner or a board of director
[an+]this make sole trader confident about his decision .
[kn] no profit share of the business.
[AN]the sole trader make his decision to invest his profits b buying capital '
[AN+]thus there is no risk of share of profit .

entire 2nd point is an explanation to the knowledge point and there is no impact shown

[Kn]Complete control
[An]As the sole owner of your business, you have full control over it. Without any shareholders or directors in the equation, you’re free to make your own decisions and run your business exactly how you want.
[An+]Thus decision making is easy without any delay (no interuption of influencer)

[Kn]direct interaction with customers
[An]As the sole operator of your business, you have the opportunity to personally engage with your customers, build relationships, and provide a high level of customer service.
[An+]This direct interaction allows to understand customers' needs, preferences enabling you to tailor your products or services to be

[kn] absolute authority
[an] complete influence over business choices and strategic decisions
[an+] dosent have to compromise ideas with shareholders leading to original ideas and smooth business operations

[kn] posession of all profits
[an] as sole traders do not have shareholders to pay or divide earnings with, they can maximise their potential profit while keeping costs low
[an+] earning more and increasing businesses potential

KN: Direct Control
AN: Sole traders have full control over decision-making and business operations
AN+: allowing for quick and flexible responses to changes or opportunities
KN: Sole Profits
AN: All profits generated by the business go directly to the sole trader
AN+: providing a direct and straightforward connection between effort and financial reward

(Kn) Complete control (an) as a sole trader the owner will be the only one to control the business and make decisions (an+) therefore, it can control the business accordingly and hence it will lead to effective control.
(Kn) No profit shared (an) All the profits go to an individual and hence the profit can be reinvested into the business (an+) which allows the business to expand and grow.

[KN] quicker decision making as any issue isn't required to be discussed with others
[AN] helps the business continue and adapt to changes instantaneously
[AN+] helping it grow steadily in a dynamic market

[KN] gets all the profit
[AN] as she/he doesn't have to give dividends or split the profits with anyone
[AN+] thus helping the sole trader get maximum income

(KN) Complete control over the business
(AN) as the sole trader is his own boss, therefore he has control over all the business affairs and decisions,
(AN+) hence they doesn't have to consult others for any changes in their decision making or the way they handle the business.

(KN) He has the freedom to choose
(AN) therefore this allows the sole trader to choose his/her own holidays, hours of work, or even hiring other employees,
(AN+) so because of this it helps the sole trader to not work by themselves but divide their work into the people they employ, as they cannot do all the work.