Rachel's business produces and sells chocolate bars. Quality is important. Rachel is a sole trader who received government support when she started up her business. The business operates in a competitive market. Rachel is considering ways to increase sales of her best-selling product. She is also planning to introduce a new chocolate bar. Rachel knows deciding which pricing method to use for a new product is important. Define 'sole trader'.
Exam No：0450_m25_qp_12 Year：2025 Question No：2(a)
Answer:
Award 2 marks for a full definition. Award 1 mark for a partial definition.
- A business is owned (and controlled) by one person [2].
- An (unincorporated) business owned by one person [2].
Partial definition, e.g.
- One person starts/runs/controls/operates a business [1]
- A business is owned (and controlled) by one person [2].
- An (unincorporated) business owned by one person [2].
Partial definition, e.g.
- One person starts/runs/controls/operates a business [1]
Knowledge points:
1.4.1.1. Sole traders, partnerships, private and public limited companies, franchises and joint ventures
1.4.1.2. Differences between unincorporated businesses and limited companies
1.4.1.3. Concepts of risk, ownership and limited liability
1.4.1.4. Recommend and justify a suitable form of business organisation to owners/management in a given situation
1.4.1.5. Business organisations in the public sector, e.g. public corporations
Solution:
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