Case Study
Amelie makes and sells candles at a
local market and online. She is a sole trader so she runs her own business as
an individual and is self-employed.
Her business, ‘Candlelight’ is
doing well and she is making a small profit. Amelie wants to take on staff and
grow her business as she is only just keeping up with the orders. A friend of
hers, Ishmael, recognises the potential of her business and offers her an
investment. In return for the money, he wants to be a partner in the business.
- If you were Amelia, what would you do?
- What are the advantages and disadvantages of being a sole trader?
- What are the advantages and disadvantages of a business partnership?
It is rare that there is just one way to respond to a scenario or situation, so do not consider that the responses you have to the above scenario will be judged as right or wrong. Share your scenario with a work colleague or friend and ask them to tell you whether they think you have responded appropriately. Ask them to challenge your response if necessary. You do not need to submit this task for assessment unless asked to do so by your assessor.