INTRODUCTION
  When an entrepreneur decides to take the risk of setting up a new business, they 
  have many important decisions to make, including:
                                 Ownership 
                                structure of the 
                                  business
                                  Location
                                 Sources of 
                                  finance
                                 Production 
                                  method
  DECISION 1: OWNERSHIP STRUCTURE OF THE BUSINESS
                                         Private 
       Sole trader     Partnership       limited       Co-operative 
                                        company
                                   Sole Trader
       •  A sole trader is a business owned and run by one person. 
          The entrepreneur makes all business decisions.
           Sole Trader: Advantages
  1 Easy to Set Up
  • There are few legal requirements unless a licence is needed to trade.
  2 Keep all the Profits
  • The owner gets to keep all the profits the business makes.
  3 Decision-making
  • The owner has complete control over all the decisions to be made.
   4 Confidentiality
   • Sole traders are not required by law to publish their financial accounts, so 
   their financial position remains confidential.
              Sole Trader: Disadvantages
   1 Unlimited Liability
   • The owner is personally responsible for all businesses debts and losses. 
   2 No Continuity of Existence
   • When the owner dies or retires the business may close down if there is nobody else to 
    take it over.
   3 Stress
   • The sole trader can experience high levels of stress due to long working hours, decision-
    making and raising finance.
   4 Lack of Capital
   • The sole trader may have difficulty obtaining capital from financial institutions as sole 
    traders are seen as having a high risk of business failure.