Question

Decision-making process in soletrading business is:
a) Quick
b) Slow
c) Neither quick nor slow

Answer 1

a) Quick.

Decision making process in a sole trading business is always quick.

The sole trading business is always owned by one person, who has unlimited liability .

It is he who takes the legal and financial decisions, and also has to bear the losses if ever the organisation suffers one.

He also mixes up his personal property with the business to maximize profit.

All this is done by him solely, and he is not answerable to anyone.

Hence, in a sole trading business, the person who owns the business takes the decisions quickly, without waiting for the consent of anyone.