IGCSE, A Level Business Student Forum

18 Outline one feature (advantage) of a sole trader. [3]
Hint: Owned by one person > Makes all decisions independently.
Hint: Has unlimited liability > Owner is personally responsible for all business debts.

KN] since sole trader business is owned and controlled by one person therefore he has the power to take all the decisions alone.
APP] The sole trader would not have to attend formal meetings which will save his time and neutralize it in something productive such as checking on employees.
AN]This will lead to productivity of the business, which reduces cost of the business, increasing the profit margin of the business.

(KN)A sole trader is his own boss and is able to make all his own decisions.
(APP)For instance, in a restaurant owned by a sole trader he/she can decide without discussing with anyone what new dishes to introduce to the menu.
(AN)This in turn leads to quicker decision making, allowing the sole trader to capture market trends more quickly, which in turn boosts market share, creating brand recognition.

sole trader is a business where one person that is the owner gets to not only make decisions but also keep all the profit generated, for example a local bakery runned by one person can decide when to open or which products to sell , this makes decision making quicker, helping the business respond faster to customer wants,Furthermore this would also keep the owner satisfied as they will be running the business accorrding to there vision and preference.

It is the quick decision-making
A sole trader is on its own, so creating a decision is less time-consuming, creating more products in less amount of time
Due to this, the business is operating without disruptions.

[KN]A sole trader gets to keep all the profits for himself as there are no partners.
[APP]For example a person who owns a small grocery store is a sole trader who will keep all the profit he makes daily.
[AN]As a result,the sole trader can then reinvest the profit into the store which will make scaling the business easier resulting in business growth.

KN:One advantage of sole trader is that the owner keeps all the profits.
APP:For example,if a sole trader runs a small grocery store , all the money made after costs belongs to them
AN:This increase owners motivation to work hard and manage the business efficiently, since they directly benefit from the success of.

[KN] A sole trader has the power to make all key business decisions.
[APP] Since without needing to consult partners or other stakeholders, a sole trader can quickly implement changes, such as adopting new technologies.
[AN] This decision-making accelerates the production process, enabling faster delivery to customers and, consequently, higher levels of customer satisfaction.

[KN] single business owner who is responsible for decisions.
[APP] For example, a small shopkeeper can make all business decisions independently eg hiring new employees or what to display.
[AN]This allows decisions to be made quickly enabling faster responses to customer needs leading to higher customer satisfaction which can increase customer loyalty and boost sales.

KN: One of the Feature of being a sole trader is that there is one person having control over everything.
APP: This Means if a person is a sole trader he does not need to consult anyone for making any changes in the business.
AN: This allows the business to be more flexible, respond to opportunities immediately and tackle problems faster as no consultation is required.

[KN]= Sole trader is independent
[APP]= Sole trader is not answerable to anyone. F.e, a restaurant owner can add new dishes to the menu or change opening timings without taking anyone's approval
[AN]= This will help the owner to make quick decisions, it will save too much time and customers needs will be responded fast. There will be no conflict with anyone on taking new steps.

[KN] A sole trader is a business owned by a single owner.
[APP] For example, a person running a bakery makes all decisions independently without needing approval from partners or shareholders.
[AN] This independence allows faster decision making which gives flexibility to adapt quickly and helps the business stay competitive.

KN: An important advantage of a sole trader is that they keep all the profits.

APP: For example, when Alan Sugar first started Amstrad as a sole trader, any profits from sales went directly to him.

AN : This motivated him to work harder because the rewards were his alone. As a result, he could make decisions quickly about how to spend or reinvest the money without needing anyone else’s approval. This faster decision-making allowed him to respond more effectively to changes in the market, helping the business meet customer needs, maintain steady sales, and increase profits.

KN: A key feature of a sole trader is that they keep all of the profits made by the business.

AP: For example, unlike partnerships or companies, they do not have to share profits with anyone else.

AN: This gives the owner a bigger personal reward for their hard work. It can also motivate them to work harder to grow the business. At the same time, it keeps decision making simple since no one else has a claim on the profits.

[KN] The decision making is quicker.
[APP] For example a single person doing a business can quickly make a decision instead of 20 people doing a business.
[AN] Hence the business can be flexible as production of a particular good won't be delayed which will increase sales of that good and if any problems occur, they will be solved quickly without any pressure of the owner/boss