Business Stuctures Flashcards
1
Q
What are two advantages of a Sole Trader?
A
- Can work at their own hours and run it how they like.
- Owns all profit.
2
Q
What are two advantages of a Partnership?
A
- Partners can share skills and expertise.
- Can share the risk and responsibility if the business.
3
Q
What are two advantages of a Company?
A
- Limited liability.
- Unlimited lifetime.
4
Q
What are two disadvantages of a Sole Trader?
A
- Takes all responsibility of company.
- Unlimited liability.
5
Q
What are two disadvantages of a Partnership?
A
- Unlimited liability.
- Control is shared.
6
Q
What are two disadvantages of a Company?
A
- Directors need to understand their responsibility.
- 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.
