Interactive workbook: Go back over this again - Exercise 1.1 – Sole traders

Introduction

Use these true or false questions to reinforce your understanding of sole traders and how they operate. This exercise should be completed after reading about sole traders on pages 3-4 of chapter 1.

. Sole traders only ever work on their own.

. Sole traders assume total responsibility for the success or failure of their businesses.

. Sole traders enjoy limited liability for the debts of their businesses.

. The sole trader format of business organization is most suited to complex businesses.