Forms Of Busniesses Flashcards
1
Q
Sole trader
A
When one person owns and controls a business
2
Q
Sole trader advantages (two)
A
Owner keeps all the profit
100% control
You are your own boss
3
Q
Some trader disadvantages (two)
A
Unlimited liability-responsible for all debts
Only one person’s savings are used to finance the business
4
Q
Partnership
A
2-20 people who form within the partnership and run a business
5
Q
Partnership advantages (two)
A
Help and support from others
More ideas and expertise
More people to invest capital
6
Q
Partnership disadvantages (two)
A
Disagreements making decision making longer
Shared profit between everyone
7
Q
Private limited company (LTD)
A
Incorporated business- owners are separate entities
