Topics covered: Sole trader
• Meaning
• Advantages
• Disadvantages
Kam San is a sole trader who operates a small florist shop in Dadar, Mumbai. Kam arranges and delivers flowers to local hospitals, hotels, and government offices mainly in South Mumbai.
Kam is known for fresh flowers and quick customer service. Despite of this his sales revenue has not been growing.
Technology has been changing the future of florists. People would love to order online and get it delivered home. This might cause further fall in revenue. However, there is an opportunity to supply flowers to local temples who prefer to buy fresh flowers early in the morning.
Questions:
a) Define the term sole trader [2 marks]
b) Explain two advantages to Kam operating as a sole trader [4 marks]
c) Explain two disadvantages to Kam operating as a sole trader [4 marks]
