Sole Trader Partnership Franchise Co-operative

Sole Trader
y A sole-trader is a one person business . y Examples of sole traders include:

Ice-Cream Vendor

Kiosk Owner

Barber

Food and Bar Vendors

Taxi Driver and Mini Bus Operators

Advantages and Disadvantages of Sole Trading

Advantages
 It can be easily and quickly

Disadvantages
 Assumes all risk and losses

formed.  All profits belong to him.  He makes decisions quickly because he has no one to consult.  Enjoys a personal relationship with his customers.  Accounts only to himself. (He is his own boss)

himself.  It is not easy to obtain loans from a bank because of high risk.  Has long working hours.  A sole trader has unlimited liability  Usually the business dies with the owner.

Partnerships
y A partnership may be defined as a legal agreement

between two (and up to twenty individuals who go into business with the common view to making a profit.

Advantages and Disadvantages of Partnerships

Advantages
 It is easy to form without

Disadvantages
 All partners lose if one

legal formalities.  More capital can be raised by the combined resources of a number of partners.  The work load can be shared among partners.  Each partner can participate in the area of work in which he has experience and training.

partner makes a mistake.  There is a risk of disagreement and quarrelling with other members of the firm.

Examples of Partnerships
y Foster and Foster y Dr. P.V. St. Rose & Dr. A St. Rose

Franchises
y A franchise is a right sold by one person or firm (called

the franchiser) to another (called the franchisee) which allows the franchisee to make a profit by selling goods carrying the franchiser s name.

Subway

Co-operatives
y A co-operative is a business organisation that is

owned and operated by its members. y Members are a group of people with a common interest . y Membership is gained by buying shares. y Shares usually have a low value such as $1, $5, 0r $10.

St. Lucia Teachers Credit Cooperative

Other Cooperatives in St. Lucia include

y Fisherman Coperative y Police and Allied Services Cooperative y Civil Service Cooperative Credit Union y Farmers Cooperative y Laborie and Chosieul Cooperative