Advantage & Disadvantage of each ownership

Question 1

ADVANTAGE and DISADVANTAGE Of sole trader

Answer 1

Advantage:

• Quick and easy to set up
• keeps profit

Disadvantage:

-Unlimited liability
- A lot of pressure on just one person

Question 2

ADVANTAGE and DISADVANTAGE Of Partnership

Answer 2

Advantage:

• Shared risk
• share ideas and decision making

Disadvantage:

-Shared profit
- May be conflict between partners

Question 3

ADVANTAGE and DISADVANTAGE Of Private limited company

Answer 3

Advantage:

• Unlimited Liability
• Greater availability of finance

Disadvantage:

• More complex to set up
• potential conflict between shareholders