Which advantage is associated with sole traders?

Sole traders have the distinct advantage of making all decisions independently and retaining all profits generated by their business. This structure allows for quick decision-making without the need to consult or gain consensus from partners or shareholders, which can lead to increased efficiency and flexibility in business operations. Furthermore, since sole traders do not need to divide profits with others, they can directly benefit from the financial success of their business. This means that every revenue generated after expenses becomes personal income for the sole trader, incentivizing them to operate effectively and maximize their profitability.

In contrast, other business structures may not afford the same level of autonomy and profit retention, as decisions can be subject to group dynamics and profit sharing.