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Small Business Management Task 1

Sole Trader

The Role of Small Business to the Economy
My Three Businesses
Technology & Small Business
Occupational Health & Safety
Human Resource
Other Submission Requirements

A Sole Trading Business

A sole trader, also known as a sole proprietor only has one owner. The owner makes all the decisions and is fully responsible for the firm and they are also liable for all debts. The business has the same legal identity as its owner and if the firm cannot meet its debts, the owner must sell his/her personal assets. A sole trader’s business is more confidential and organisation is simple, establishing a business as a sole trader can also be relatively cheap and the owner will have sole entitlement to their business’s capital and profit. Because the owner and the business have the same identity, only one tax return form has to be filled out. Unfortunately, a sole trader has to look after all aspects of the business from the quality of the service or products, to financial planning, to taxation and marketing. In other words, more commitment is needed to run a sole trader business, as there is little time for days off or holidays.


SBM Task 1 By Luke Cerff