Sole Traders Overview

A business owned and operated by one person.

The owner must register with and submit annual accounts to the Government Tax Office.

The business name must be registered with the Registrar of Business Names.

In some industries, sole traders must follow specific laws.

Sole traders must adhere to health and safety regulations.

Some businesses need to obtain a license to operate.

Sole traders are responsible for all aspects of their business.

Sole traders have unlimited liability, meaning they are personally responsible for all business debts.

One advantage of being a sole trader is the freedom to set your own working hours, take holidays when you please, determine pricing, and choose employees.

When a sole trader dies, the business legally ceases to exist.

A legally binding document outlining the terms of a partnership, including profit sharing and responsibilities.

One of the key points in a partnership agreement is how profits will be divided among partners.

Partnerships often have a set duration, outlining when the agreement will end.

A partnership agreement should include provisions for situations like a partner's absence, retirement, or the addition of new partners.

A business structure where the owners are not separate from the business. If a partner dies, the partnership dissolves.

The ability to raise more funds for business growth by combining the resources of multiple partners.

Distributing responsibilities among partners allows for specialization and efficient management.

Partners are motivated to work hard because they share both the profits and losses of the business.

Partners might disagree on business decisions, leading to delays and potentially hindering progress.

If one partner is dishonest or inefficient, it can negatively impact the entire business and the other partner's interests.

A form of business ownership where the company is a separate legal entity from its owners, providing limited liability protection.

A legal document stating a company's rules and regulations for management and operation.

A formal document outlining a company's purpose, objectives, and details like its name and registered address.

A type of leadership style that encourages autonomy and limited intervention from managers, focusing on the employees' capabilities.

The impact of a company's activities on society and the environment beyond its immediate operations.

The process of registering a company with the government, allowing it to legally operate and trade.

The financial records of a company, including profit and loss statements, which are publicly accessible.

A leadership style where managers give employees lots of freedom and minimal supervision. They only intervene when asked or if there's a problem.

The term "laissez-faire" comes from French and means "allow to do."

One role of a manager is to delegate tasks and allow employees to make decisions.

Another role of a manager is to provide support, guidance, and training to their team while trusting them to execute their tasks and projects.

A cost that a business activity imposes on people or the environment that's not directly paid by the business, like pollution from oil production.

A benefit to people or the environment that's not directly paid for, like the knowledge gained from education that benefits society.

Two-way radios allow for real-time communication between workers, helping with task coordination and safety.

Satellite communication enables data transmission over long distances, especially beneficial for offshore operations, but it can be expensive and vulnerable in bad weather.