Accounting 0452 · IGCSE · Sole traders

Sole traders — practice question

What is one drawback of operating a business as a sole trader?

  • AThe owner does not have to pay interest on drawings.
  • BThe owner is entitled to all the profits made by the business.
  • CThe owner must share the decision-making and the profits.
  • DThe owner’s personal possessions are at risk if the business should fail.

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