What is a sole trader?

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Prepare for the ITEC Professional Conduct and Business Awareness Exam with multiple choice questions. Each question is designed to enhance your knowledge and ready you for your exam. Learn detailed explanations and insights to ensure you ace your test!

Multiple Choice

What is a sole trader?

Explanation:
A sole trader is a business owned and run by a single person who has full control over finances and decisions. The option describing a single person who controls the finances and decisions best matches that idea, since it centers on one owner making all the choices. The other options point to different structures: a partnership involves two or more people; a company is a separate legal entity; a franchise model is a business run under a franchisor’s brand. In everyday terms, the sole trader model means one person is responsible for profits, losses, and day-to-day decisions.

A sole trader is a business owned and run by a single person who has full control over finances and decisions. The option describing a single person who controls the finances and decisions best matches that idea, since it centers on one owner making all the choices. The other options point to different structures: a partnership involves two or more people; a company is a separate legal entity; a franchise model is a business run under a franchisor’s brand. In everyday terms, the sole trader model means one person is responsible for profits, losses, and day-to-day decisions.

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