3223367
Description
Mind Map by Brody Moodie, updated more than 1 year ago
|
Created by Brody Moodie
over 8 years ago
|
|
Sole Trader
- characteristics
- own business on your own
- responsible for all financial and management decisions
- responsible in an ethical, administrative and legal way
- easiest form of business to set up
- no requirements, application, legal forms or processes to follow
- own business on your own
- Advantages
- owner makes all decisions
- Requires very little capital to start up
- All profits belong to owner
- Management structure is simple
- dynamic and flexible business can adapt to the needs of a custormer
- owner invests passion and interest to achieve goals
- no legal processes and requirements
- owner makes all decisions
- Disadvantages
- unlimited liability, owner is responsible for all debt
- cash flow is often a problem
- Growth can be restricted due to lack of capital
- not a legal entity
- management and decision making done by one person
- Difficult to attract highly skills and knowledgeable employees
- unlimited liability, owner is responsible for all debt
Want to create your own Mind Maps for free with GoConqr? Learn more.