Business Ownership

Question 1

What are advantages of a partnership

Answer 1

• bring new ideas into business , skills and expertise
• work load be shared
• more capital more investment

Question 2

what are the disadvantages of partnerships

Answer 2

each partner is legally responsible for each other

unlimited liability

decisions shared so disputes

profits shared

Question 3

what are the advantages of private limited companies

Answer 3

limited liability - cant lose more money than invest

incorporated so only lose money invested

control over shares any new shareholders need to be invited no takeover

Question 4

what are disadvantages of private limited

Answer 4

expensive due to legal paperwork - it can be very time consuming to set up

legally obliged to publish accounts