Which is NOT an advantage of being a sole trader?

Being a sole trader comes with several distinct advantages, and among the listed options, the one that stands out as NOT being an advantage is the concept of unlimited liability for business debts.

When operating as a sole trader, the business is not legally separate from the owner. This means that if the business incurs debts, the owner is personally responsible for paying those debts, which can place their personal assets at risk. This aspect is often seen as a significant disadvantage because it creates financial vulnerability.

On the other hand, the other points illustrate the benefits of being a sole trader. It is generally easier to set up and manage a sole proprietorship compared to more complex business structures, which streamlines the process for individuals looking to start their own ventures. Additionally, the owner retains all profits generated by the business, allowing for complete control over financial gains. Furthermore, decision-making is entirely in the hands of the owner, fostering independence in business operations.

Thus, while the independence and financial benefits are appealing characteristics of being a sole trader, the feature of unlimited liability is a critical downside that does not qualify as an advantage.