Sole Trader, Partnership, Private, Public

Question 1

Advantages of sole trader

Answer 1

You are the boss
You make all the decisions
Pocket all the profits

Question 2

DIsadvantages of sole trader

Answer 2

Responsible for your decisons
Less capital to invest
No other input unless you employ staff
Long hours unless you employ staff
Bear all loses
Unlimited liability (may have to sell personal assets)

Question 3

Advanatges of partnership

Answer 3

You have othe rpartners to discuss things with (shared decisions)
More partners with more money to invest
More people with differnet range of skills
Saving time because workload is shared
Losses can be shared

Question 4

Disadvanatges of partnership

Answer 4

Could be arguments and disagreemnts
Alll partners responsible for the decions of other partners
Profit has to be shared
Unlimited liability (sell personal assets)

Question 5

Advantages of private company

Answer 5

More owners to share decions
More people buying shares into company, more money to invest
More people more skills
Workload shared
Share losses
Limited liability

Question 6

Disadvantages of private company

Answer 6

Conflict amongst owners about decions
Share profits

Question 7

Advantages of public comapny

Answer 7

More capital to invest cause more shares available to the public
Multiple people with wide rang of skills
Shared workload
Shared losses
Limited liability

Question 8

Disadvantages of public company

Answer 8

More complex to set up public company and more expensive
Shared profits