Advantge-Disadvatge of business ownership Flashcards
give me disadvantages of setting up as a sole trader
-Unlimited liability-This means that they could lose their Personal things
-They work alone -This means that they have to lots of responsibility
give me Advantage of setting up as a sole trader
- It easy to set up as a sole trader - for example this means that it only includes one entrepreneur (Somebody who takes risks for their business )
-They don’t need to pay corporation tax -This means that other than other ownership they don’t need to pay corporation tax
-They can choose the hours they work This is because they can be suitable when they work
give me Advantage of setting up as a partnership
- They can share ideas into the business -This is because there is more than one person thinking of the ideas
-There is less responsibility and they are both in risk in the business
give me disadvantages of setting up as a partnership
-The profits are spit -This is because 2 people are in the business and you have to share the profit
- it can cause conflict -This is because 2 people might not not agree on their ideas
give me disadvantages of setting up as a Private limited company LTD
-Its very expensive -This is because many business have to pay a lot of money
-If the business fails then the Shareholders lose the capital that they have invested
give me advantages of setting up as a Private limited company LTD
-There is less financial risk for starting up as a private limited company
-it has its own legal entity -this id because if the owner dies the company can still continue
give me advantages of setting up as a Franchisee
-They are provide by Support ,Training,and machinery by the company
-They are a tested devolved format and brand
give me Disadvantages of setting up as a Public limited company
-It is very expensive to set up
-There is a greater risk of hostile takeover
