A Sole Trader is

A Sole Trader is

• A. A business owned and operated by one person
• B. A business owned by two to twenty people
• C. A business that invites 2-50 private shareholders
• D. A business that offers shares to the public

Answer: (A)

Being a sole trader means a business is owned and operated by a single person. This single-ownership setup distinguishes it from other structures that involve partnerships (two or more owners) or companies (owners are shareholders, either private or public). A sole trader is typically easy to set up and keeps all profits, but the owner often carries personal liability for business debts since the business isn’t a separate legal entity. The other descriptions refer to a partnership, a private company, and a public company, respectively.

Being a sole trader means a business is owned and operated by a single person. This single-ownership setup distinguishes it from other structures that involve partnerships (two or more owners) or companies (owners are shareholders, either private or public). A sole trader is typically easy to set up and keeps all profits, but the owner often carries personal liability for business debts since the business isn’t a separate legal entity. The other descriptions refer to a partnership, a private company, and a public company, respectively.