... is a business, which is run and owned by one person, this person makes the decisions, invests and is fully responsible for the business. A sole trader has unlimited liability, which means if the business doesn't make profit and eventually goes bankrupt the owner is liable, meaning they could lose personal possessions in order to pay back the dept, this shows a sole trader has a lot of responsibility and needs to carry out a lot of market research. A partnership is the same thing as a sole trader but 2-20 people can own the business, meaning capital is raised quicker and the business can be run easier, the profits need to be shared out between the partners meaning not as much money is made as a sole trader. The partners can help in decision making and running of the business making it much easier than a sole trade, however ...

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