As a type of business organisation, describe three features of a sole trader - Leaving Cert Business - Question 11 - 2006
Question 11
As a type of business organisation, describe three features of a sole trader.
(i)
(ii)
(iii)
Worked Solution & Example Answer:As a type of business organisation, describe three features of a sole trader - Leaving Cert Business - Question 11 - 2006
Step 1
One person owns and runs the business
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Answer
A sole trader is an individual who completely owns and operates the business. This provides them the autonomy to make all decisions related to the business without any need for consensus or approval from partners or shareholders.
Step 2
Owner makes all the decisions – complete control
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The sole trader has complete control over the operations and direction of the business. This means that they can adapt quickly to changes in the market or implement new ideas without the need to consult with others.
Step 3
Owner keeps all the profits
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Answer
In a sole trader model, the owner is entitled to keep all profits generated by the business. This can be a significant incentive for individuals to run their businesses effectively, as their efforts directly contribute to their personal financial gain.
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