Business Ownership Flashcards
1
Q
What is a sole trader?
Give examples
A
A business owned and run by one person
E.g. photographers, electritions , hairdressers
2
Q
What are advantages and disadvantages of sole traders?
A
Advantages - quick and easy to set up - makes own decisions - keep the profits Disadvantages - risk of unlimited liability - works long hours - high level of responsibility
3
Q
What is a partnership?
A
A type of business that has between 2 and 20 owners
4
Q
What are the advantages and disadvantages of partnerships?
A
Advantages - quick and easy to set up - shared decision making - shared responsibility for debt - more skills and ideas - more capital available to invest Disadvantages - long work hours - profits shared between partners - possible conflict - risk of unlimited liability - not upholding
