Legal Structures

Question 1

Sole trader pros

Answer 1

Make decisions quick
Own boss
Easy to set up
More profit
Not show data of business

Question 2

Sole trader cons

Answer 2

Unlimited liable
Pay all costs
No job security
No one take over holiday, illness,maternity

Question 3

Partnership pros

Answer 3

Niche skills
Shared probs

Question 4

Partnership cons

Answer 4

Withdrawal from business
Control of business

Question 5

Ltd pros

Answer 5

Extra capital
Can employ managers to run it
Limited liable
Own legal status

Question 6

Ltd cons

Answer 6

Accounts not private-has to be accurate,lots of admin
Audited each year info in £ report checked
More difficult to set up
£to set up
Inability to issue shares on stock market

Question 7

Plc pro

Answer 7

Easier to grow business
Very large finance can be raised by selling shares to public.

Question 8

Plc cons

Answer 8

Need 50k to start
Shareholders paid divident
Controlling share51%of business-wins vote
Shareholders can pressure directors Into making decisions for short term profit not long term.