Advantages And Disadvatntage

Question 1

Advantages of a sole trader

Answer 1

• gets to make all the decisions

- you get all the profit

Question 2

Disadvantages of a sole trader

Answer 2

• have to pay for losses or debts personally

- not many ideas

Question 3

Advantages of a partnership

Answer 3

• lots of ideas

- faster

Question 4

Disadvantages of a partnership

Answer 4

• have to run all your ideas by everyone in the partnership

- share profit

Question 5

Advantages of a sleeping partner

Answer 5

• don’t have to do any work

- limited liability

Question 6

Disadvantages of sleeping partner

Answer 6

• don’t get to make any decisions

- don’t get as much money as people who actually work

Question 7

Advantages of being a franchisor

Answer 7

• doesn’t have to do all the work

- gets more profit since there are more shops

Question 8

Disadvantages of being a franchisor

Answer 8

• looses control when the company starts to get bigger

- has to share profit

Question 9

Advantages of being a franchisee

Answer 9

• doesn’t have to come up with any business

- isn’t fully responsible for business

Question 10

Disadvantages of being a franchisee

Answer 10

• has to follow specific rules

- has to share profit

Question 11

What is the structure of an exam answer?

Answer 11

One benefit…..this means that……as a result……however…..