Your assignment is to prepare and submit a paper on introduction to legal frame work. lly an individual that carries on business activities on his own account and is singularly responsible for all the losses and profits that are made by his business.In managing the business enterprise, a sole trader is tasked with the responsibility of acting as both the risk bearer and the owner of his business. He is expected to use his own labor and skill as well as use his own capital in addition to his also being entitled to all the profits that the business organization is able to make. As a result of his having unlimited liability, a sole trader is personally responsible to all the creditors of the business enterprise and he alone bears the complete risk of the failure or success of the business organization. In the event that the business enterprise happens to be particularly large, a sole trader has the option of employing a large number of people to help him in effectively managing the business operations. He also has the option of borrowing funds to be used in financings the operations of his expanding business.Canwell (2005), points out that about 63 percent of all business organizations in the United Kingdom are noted to be run as single-person enterprises. Some of the advantages of this business structure include the fact that the registration of a small business in the United Kingdom is relatively straight forward, its record keeping is simple and the owner gets to enjoy keeping all the profits that are made by the business organization after paying taxes. Opting to operate as a sole trader provides the business owners with the opportunity of being able to test the market before they can go on to get involved in some of the more complicated forms of business structures.The main disadvantage with this form of business structure is that the current laws do not make any distinction between the sole trader and the business. It is this aspect that causes the trader to have unlimited liability.
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