SOLE TRADER OR PROPRIETOR AS FORM OF BUSINESS OWNERSHIP

Junior Secondary  School

Business Studies JSS 1(Basic 7)

Second Term Lesson Notes

Subject : 

Business Studies

 

Term :

SECOND TERM

 

Week:

Week 4

 

Class :

JSS 1

 

Topic :

Sole Trader or Proprietor

 

Previous lesson : 

The pupils have previous knowledge of

 

 ENTREPRENEURSHIP

that was taught as a topic during the last lesson.

 

 

Behavioural objectives :

At the end of the lesson, the pupils should be able to

 

  • Say the meaning of sole trader
  • Explain what a sole trader does
  • Say the importance or benefits of one man business

 

 

 

Instructional Materials :

  • Wall charts
  • Pictures
  • Related Online Video
  • Flash Cards

 

 

Methods of Teaching :

  • Class Discussion
  • Group Discussion
  • Asking Questions
  • Explanation
  • Role Modelling
  • Role Delegation

 

Reference Materials :

  • Scheme of Work
  • Online Information
  • Textbooks
  • Workbooks
  • 9 Year Basic Education Curriculum
  • Workbooks

 

 

 

Content 

SOLE TRADE

CONTENT

  1. Types of Business Organisation
  2. Meaning of Sole Trade
  3. Advantages and Disadvantages of Sole Trade

 

Forms or Types of Business Ownership

The following are the four forms of business ownership:

  1. Sole proprietorship;
  2. Partnership;
  3. Co-operative societies and
  4. Private and public limited liability companies.

Ownership refers to the individual or organization that brings together the factors of production.

Meaning of Sole Trade

Sole trade is a business owned by one person. The size of the business may be large or small but it is important to note that it is owned by one man. Examples are restaurants, supermarkets, filing stations, schools etc. The owner of the business is called a sole trader or a sole proprietor. Another name for sole trade is sole proprietorship.

Advantages and Disadvantages of Sole Trade

Advantages of Sole Trade:

  1. It is easy to start.
  2. The sole proprietor has a close contact with his customers and attends to them personally.
  3. He takes all decisions affecting his business alone.
  4. It requires small capital to establish.
  5. It can fit any environment.

Disadvantages of Sole Trade

  1. The provision of capital and ability is limited.
  2. The business ends when a sole trader dies.
  3. He suffers and bears risks alone.
  4. If business fails, he may have to sell his personal property to pay the debt.
  5. Higher unit cost of goods when compared with large business operators

 

 

 

Presentation

 

The topic is presented step by step

 

Step 1:

The class teacher revises the previous topics

 

Step 2.

He introduces the new topic

 

Step 3:

The class teacher allows the pupils to give their own examples and he corrects them when the needs arise

 

 

 

 

 

EVALUATION

  1. State at least three advantages of sole trade.
  2. Identify at least three disadvantages of sole trade.
  3. Mention all the sources of capital of sole trade.

 

 

 

 

Conclusion

The class teacher wraps up or conclude the lesson by giving out short note to summarize the topic that he or she has just taught.

The class teacher also goes round to make sure that the notes are well copied or well written by the pupils.

He or she does the necessary corrections when and where  the needs arise.