Question

Differentiate between wholesale trader and sole trader.

Hint:

Focus on the scale of operation and ownership structure for differentiation.

Answer 1

Step 1: A wholesale trader focuses on bulk purchasing from manufacturers and selling to retailers or other businesses, dealing with large quantities and lower margins. Step 2: A sole trader is an individual who owns and operates a business alone, with unlimited liability, and can engage in wholesale, retail, or any other trade, managing all aspects personally. Step 3: The key difference lies in the business model (bulk trade vs. ownership structure), not exclusivity, as a sole trader could also be a wholesaler.