AQA GCSE · Question 03.1 · Business in the real world
Read Item C and Table 1. Using Item C, explain one benefit to Eve of being a sole trader.
How to approach this question
1. **Identify a benefit:** State a known benefit of being a sole trader (e.g., keep all profit, full control).
2. **Find evidence:** Look in Item C for a sentence or data that supports this benefit.
3. **Explain the link:** Write a sentence that connects the benefit to the evidence you found.
4. **Develop the point:** Explain why this is an advantage for Eve and her business, STC.
Full Answer
A sole trader is a business owned and run by one person. There is no legal distinction between the owner and the business.\n\n**Benefits:**\n* **Full Control:** The owner makes all decisions. Item C states, "Eve makes all the major decisions in the business." This allows for speed and clear direction.\n* **Keep all Profits:** The owner is entitled to 100% of the profits. Item C states the business made "a profit of £450 000 last year." This is a direct reward for her efforts.\n* **Easy to Set Up:** Fewer legal formalities and lower start-up costs compared to a limited company.\n\n**Drawbacks (not asked for, but good to know):**\n* **Unlimited Liability:** The owner is personally responsible for all business debts.\n* **Difficult to Raise Finance:** Banks may be more reluctant to lend to sole traders.\n* **Heavy Workload:** The owner is responsible for all aspects of the business.
Common mistakes
✗ Not using the information from Item C. A generic answer about sole traders will score low marks.\n✗ Stating a benefit but not explaining *why* it is a benefit. For example, just saying "She made £450,000 profit" isn't a full explanation.
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