... Working Capital External sources Ownership capital * Shareholders Non ownership capital, financial sources that are not shareholders. * Loans e.g. debentures * Overdraft * Hire purchase * Grants * Venture capital * Leasing A sole trader is the simplest and easiest type of business to set up as there are no legal requirements to comply with; all there is to do is start trading. The down side of being a sole trader is that they have unlimited liability, which means that if the business goes bankrupt the sole traders personal assets may be taken to pay off the unpaid debit if the business has run out of money. But the advantages are that all of the profit that is made from the business is the sole traders to keep as they are their own boss. There is basic financial help that this type of business venture can obtain; the most commonly used for small enterprises are their ...

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