14 Example 5(b) â Solution Because g (x) = log 2 x x is the inverse function of f (x) = 2, the graph of g is obtained by plotting the points (f (x), x) and connecting them with a smooth curve. The graph of g is a reflection of the graph of f in the line y = x, as shown in Figure 3.14. contâd Figure 3.14.
Legal liability and protection of personal assets are two areas where operating as a sole trader is a major disadvantage. In the event of a legal claim against the business, where insurance does not cover the full extent of any damages awarded, the owner's personal assets can be attacked to pay the damages.hen the business is being started part-time, while the owner continues in full-time employment, operating as a sole trader allows the owner to reduce tax payable on the employment income if losses are made. This tax reduction is subject to the business satisfying non-commercial business loss provisions.
1. What are the characteristics of sole proprietorships, partnerships and limited companies? What are the advantages and disadvantages of each type of business? Sole proprietorships. A sole proprietorship is a business that is run by a single individual who makes all the decisions, although the proprietor may engage employees. The sole proprietor is personally entitled to all of the profits and is responsible for any debts that the company incurs. Advantages of forming a sole proprietorship. 1  Sole proprietorship is the simplest and most flexible business structure. 2  The sole proprietor has total control and full decision-making power over policies, profits and capital investment. 3  It is easy to close down the business.