An advantage of operating as a sole trader is:
A) the owner claims all the profits if the business is sold.
B) the business is limited by the skill, time and investment of the owner.
C) the business is not a separate legal entity.
D) the owner has unlimited liability.

Question

Quizplus · Accepted Answer

Operating as a sole trader allows the owner to claim all the profits if they sell the business, which is an advantage in terms of financial benefit. This option also offers complete control over business operations and decision-making. However, there are several disadvantages such as unlimited liability, limited resources, and limited legal protection.

An Advantage of Operating as a Sole Trader Is