1.1 Business In The Real World

Question 1

What are the Benefits and Drawbacks of partnerships ?

Answer 1

.(benefit)- Theres more people to share the workload with meaning decisions can be easier
.(drawback)- More people may cause more disagreements
.each partner is legally responsible for what the other partner does.

Question 2

What are the Benefits and Drawbacks of sole traders ?

Answer 2

(Benefits)- they’re easy to set up also a great start-up business
(Drawbacks)- theres unlimited liability meaning you would have to pay back any debts your business may owe even if this means selling everything you own.

Question 3

What are the Benefits and Drawbacks of (PLC) public limited companys ?

Answer 3

(Benefit) limited liability can cause more capital which helps the company to expand and diversify
(Drawback)- the accounts have to be made public so everyone (even competitors) can see if a business is struggling unless you own many shares.

Question 4

What are the Benefits and Drawbacks of (LTD) private limited companys ?

Answer 4

(Benefit)- limited liability you cant lose more than what you invested.
(Drawback)- More exspensive to set up than partnerships because of all the legal paperwork needed to be done.