others in st

• Sole trader- individual trading in her own name or under suitable trading name
• Usually self employed for example plumbers and shopkeepers
• They can employ staff as well
• Main feature is that they have full responsibility over financial control and also meeting running costs as well as tax
• Having full responsibility for all debts of the business is called unlimited liability
• Unlimited liability can be risky as if the business goes in a huge amount of debt than the owner is responsible for paying all of it back and may have to sell personal assists such as their houses
• Small business which aren’t really profitable are most likely to be a sole trader
• Sole trader may Grow and expand and take on different forms of legal ownership