Business Environment Flashcards

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1
Q

What are the types of business organizations ???

A

-sole proprietor/trader
-partnership
-limited liability company

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2
Q

What is a sole trade business???

A

This is a business owned by one person who assumes all the assets of the business as well as all the debts

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3
Q

Features of a sole trader

A

-only one person provides all needed capital and manages it alone
-simplest and most common type of business enterprise

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4
Q

Advantages of a sole trader

A

-business is easy to set up, control and manage
-requires small amount of capital to set up
-Owner makes independent and quick operational decisions
-business affairs are kept private except when completing tax returns

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