MULUNGUSHI UNIVERSITY
School of business studies
Name: KONDWANI TEMBO
STUDENT NO : 201802661
COURSE : BUSINESS LAW 2
COURSE CODE : LIR 252
PROGRAM : BBAEII
ASSIGNMENT: WHO IS A SOLE TRADER ? WHAT ARE
THE ADVANTAGES AND DISADVANTAGE OF BEING A
SOLE TRADER ?
LECTURER : MR JJEMBA
DUE DATE : 17TH MARCH, 2020
Introduction
A sole proprietorship, also known as the sole trader, individual entrepreneurship or
proprietorship, is a type of enterprise that is owned and run by one person and in which there is
no legal distinction between the owner and the business entity. A sole trader does not necessarily
work ‘alone’—it is possible for the sole trader to employ other people , this is according to
Wikipedia. A sole trader is the simplest form of business structure and is relatively easy and
inexpensive to set up. As a sole trader you will be legally responsible for all aspects of the
business. You’ll generally make all the decisions about starting and running your business and
you can employ people ( small business|sole trade).
Therefore a sole trader also known as a sole proprietorship is a simple business arrangement, in
which one individual runs and owns the entire business. Although many people use the term to
refer to businesses that have no other employees aside from the owner, the actual definition of
