Solution 12.2 

The advantages of being a Sole Trader

1. The simplicity and ease with which one can set up in business.
2. The lack of legal controls and constraints.
3. Privacy, as the accounts of sole proprietorships are not required to be published unlike the accounts of companies.

The disadvantages of being a Sole Trader

1. One is not protected by limited liability and is liable personally for all the debts of the business and personal assets may be lost.
2. Sourcing finance can be more difficult with only one owner.
3. The rates of tax on profits for sole traders are higher than for companies.