Business Structures Flashcards
1
Q
What is two advantages of a Sole trader?
A
- Can own all their profits
- Work the hours they like
2
Q
What is two advantages of a Partnership
A
- Partners can share skills and expertise
- Can share the risk and responsibility of the business
3
Q
What is two advantages of a Company
A
- Limited Liability
- Unlimited lifetime
4
Q
What is two disadvantages of a Sole trader
A
- Takes responsibility of company
- Unlimited Liability
5
Q
What is two disadvantages of a Partnership
A
- Unlimited Liability
- Control is shared
6
Q
What is two disadvantages of a Company
A
- Directors need to understand their responsibilities
- Higher cost of entry
7
Q
What is unlimited liability
A
If the business fails, the personal assets of the owner can be used to repay business debts.
8
Q
What is limited liability
A
If the business fails, the personal assets of the owner cannot be used to repay business debts.
