What is a similar / same concern?

[John Paulson]

I'm going through a NCFE Level 2 Certificate in Creating A Business Start-Up for fun and I'm kinda stumped by the following passage:

A sole trader business will not continue following the retirement or death of the owner, but the assets of the business can be sold to another person or organisation for them to use to run a similar concern.

Is this saying that, if you're a shoe repair shop for instance, the equipment, upon owner death or retirement, should only be sold to individuals or businesses seeking to set up a shoe repair business?

 

[Mark T Jones]

It doesn't say should or only, it says can.

You are over-thinking - it's just an example

 

[John Paulson]

It doesn't say should, it says can.

You are over-thinking - it's just an example

My bad LOL

 

[Gecko001]

Many sole-trader businesses look exactly like, say, Ltd Company businesses. They have premises, employees, equipment etc. However, even though they might look the same as Ltd companies, sole-trader business are totally owned by a person. They own all assets of the business, so when the business is "sold" as a going concern, in effect the company or person buying the business will be buying it off a person who personally owns it.

So the business can be sold to a person or organisation when the sole trader dies or retired, but it could also be closed down and all the assets sold individually or at an auction etc.