Which of the following is a disadvantage of a sole trader?

Study for the IGCSE Edexcel Business Test. Utilize practice quizzes with multiple choice questions and comprehensive explanations. Prepare effectively for your exam!

Multiple Choice

Which of the following is a disadvantage of a sole trader?

Explanation:
When a business is run as a sole trader, the owner must handle almost every task themselves—sales, accounting, administration, and day-to-day operations. This leads to long hours and a lot of hard work because there’s no one else to share the workload. The extra burden can cause stress, reduce personal time, and limit the business’s ability to grow quickly, which is a common drawback of operating solo. The other statements describe advantages rather than disadvantages: keeping all profit is a benefit since the owner isn’t sharing earnings; the setup is simple, which is another plus; and while government help can be available, it isn’t inherently a disadvantage of being a sole trader.

When a business is run as a sole trader, the owner must handle almost every task themselves—sales, accounting, administration, and day-to-day operations. This leads to long hours and a lot of hard work because there’s no one else to share the workload. The extra burden can cause stress, reduce personal time, and limit the business’s ability to grow quickly, which is a common drawback of operating solo.

The other statements describe advantages rather than disadvantages: keeping all profit is a benefit since the owner isn’t sharing earnings; the setup is simple, which is another plus; and while government help can be available, it isn’t inherently a disadvantage of being a sole trader.

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