What is one advantage of operating as a sole trader?

Operating as a sole trader offers the significant advantage of allowing the owner full control over the business and the ability to keep all profits generated from it. This means that the sole trader can make decisions quickly without needing to consult with partners or shareholders, which can enhance agility and responsiveness to market changes. Additionally, the simplicity of having all profits directly benefit the owner can be a strong motivating factor to grow the business and invest in it further.

The other options reflect characteristics of different business structures. Limited liability, for instance, is typically associated with corporations or limited liability partnerships, which protect owners' personal assets from business debts. A sole trader does not enjoy this protection. Furthermore, the suggestion that operating as a sole trader requires a large initial investment does not necessarily hold true; it can often be started with relatively low capital compared to other business forms. Lastly, access to corporate funding typically refers to corporations which have more avenues for raising capital, unlike sole traders who primarily rely on personal resources or loans.