(b) That's right. A sole trader must finance their business operations either from their own capital resources or by raising personal loans. A sole trader does not have access to the wider capital-raising possibilities that are available to other types of business organisation, such as partnerships or companies.

In the circumstances of the case study, Edward seems to have sufficient accumulated cash and equipment to start his business.

If he requires further money, he will most likely be able to borrow it, perhaps from a bank, because he has assets such as his house, that he can use to secure the repayment of the loan.

The owner of a sole proprietorship owns the assets that are used for the business.