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Sole Traders Flashcards | StudBud
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Sole Traders
Sole Traders
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Flashcards
16 cards
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Practice quiz
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Questions
16
Answers
1
Becoming a sole trader is simple. All you have to do is register your business name
False
( ͡° ͜ʖ ͡°)
True
2
Name another disadvantage of being a Sole Trader
It is easier to keep overall control
The wage bill will usually be low
Decreases the initial start-up cost
Sole traders often work long hours
3
Sole Traders are NOT allowed to use ‘Ltd’ in their name
Depends
False
True
4
Sole Traders can to turn into a Limited Business
False
True
5
What is the definition of a Sole Trader?
Someone who sells their soul to the devil
two or more individuals who share management and profits
An individual who is the exclusive owner of a business
A business which sells directly to the customer
6
Name a benefit for a Sole Trader
Help each other out when they need to
There is no room for help by others
Sole traders retain all the profits of their business
Sole traders maintain full control of their business
7
Name another benefit of being a Sole Trader
Easier to build relationships with customers
There is less time pressure
There is someone to consult over business decisions
Sole Traders have no one to share the responsibility
8
Name a disadvantage of being a Sole Trader
More challenging to acquire loans
Issues are solved by one person
You keep all profits
Information about sole traders is kept private
9
If a Sole Trader hired more than one person, it's no longer a Sole Trader
False
True
10
There are typically more employees in Sole Traders
True
False
11
Sole Traders only have one exclusive owner
False
True
12
Sole Traders have unlimited liability
False
True
13
What responsibilities do Sole Traders have to follow?
Make sure the business have the correct amount of staff
Keep records of your business’s sales and expenses
Make sure the business has enough money
Send a Self Assessment tax return every year
14
Small retailers, plumbers and builders would usually be Sole Traders
True
False
15
Why would someone decide to be sole trader
Risk of unlimited liability
No one to share the responsibility
Control
Be their own boss
16
The sole trader can’t use a name registered to someone else
True
False
